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What is the company current stock price

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Problem 1: ABC expects to pay a $5.00 per share dividend on its common stock at the end of the year (D1 = $5.00). The dividend is expected to grow 25 percent a year until t = 4, after which time the dividend is expected to grow at a constant rate of 6 percent a year. The stock's required rate of return is 22.5%. What is the company's current stock price?

Option 1: $56.47
Option 2: $62.2
Option 3: $44.69
Option 4: $40.48

Reference no: EM132856774

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