Natalie is interested in valuing the shares of Union Aerospace (UA). UA pays dividends annually. She expects the stock to pay dividends of $3 at the end of each of the next four years

Thereafter, she expects the dividend to grow at 7% per annum in perpetuity. If her required return is 12%, then how much should she pay for a share?
A) $43.63
B) $45.54
C) $47.24
D) $49.91
E) $73.31


D

Business

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