Preparing to pay its first dividends

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Reference no: EM13928602

Boo pack is preparing to pay its first dividends. It is going to pay $1.00, $2.50, and $5.00 a share over the next three years, respectively. After that, the company has stated that the annual dividend will be $1.25 per share indefinitely. What is this stock worth to you per share if you demand a 7% rate of return?

$7.20

$14.48

$18.88

$21.78

$25.06

Reference no: EM13928602

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