A firm expects to pay dividends at the end of each of the next four years of $2.00, $1.50, $2.50, and $3.50. If growth is then expected to level off at 8 percent, and if you require a 14 percent rate of return, how much should you be willing to pay for this stock? (Round intermediate calculations to two decimal places.)
A. $39.38
B. $22.49
C. $58.15
D. $63.00
E. $43.96
Answer: E
Business
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