Question - Use the following information to solve the problem below:
Hupta Corporation --2002---
Net income: $ 6,000
Dividends: $ 2,000
Total assets-12/31/02: $ 50,000
Total liabilities-12/31/02: $ 20,000
Number of shares outstanding: 1,000
Cost of equity: 10%
Using the dividend discount model, assuming dividends grow at 10% in 2003 and at 5% thereafter, what is the value per share of Hupta at 12/31/02?
A) $48.20
B) $44.00
C) $40.18
D) $40.00