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Question 7 Answer saved Marked out of 1.00 Flag question Question text A stock...

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Question 7

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A stock is expected to pay its first $56 dividend in 7 years from now. The dividend is expected to be paid annually forever and grow by 0% pa. The discount rate is 2% pa. Estimate the current stock price. The current stock price should be:

Question 7Select one:

a.

$2,389.77

b.

$2,437.57

c.

$2,486.32

d.

$2,542.32

e.

$2,800

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