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  3. cats co. presently pays no dividend. you anticipat

Cats Co. presently pays no dividend. You anticipate Cats Co. will pay an annual dividend...

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Accounting

Cats Co. presently pays no dividend. You anticipate Cats Co. will pay an annual dividend of $1.56 per share three years from today and you expect dividends to grow by 3% per year thereafter. If Cats Co.'s equity cost of capital is 12%, then the value of a share of Cats Co. today is:

Select one:

a. $17.33

b. $13.82

c. $12.34

d. $15.47

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