What is the current value of this stock if the required

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General Importers announced today that its next annual dividend will be $2.60 per share. After that dividend is paid, the company expects to encounter some financial difficulties and is going to suspend dividends for 5 years. Following the suspension period, the company expects to pay a constant annual dividend of $1.30 per share. What is the current value of this stock if the required return is 18 percent?

A. $3.01

B. $3.55

C. $3.89

D. $4.27

E. $4.88

Reference no: EM132354901

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