What is the price of one share of stock today

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Problem 1: Como Electronics just paid a dividend of 3.15 per share. The company plans to increase its dividends by 5% each year for the next 5 years, then reduce the annual increase to 2.5% in perpetuity. If the required rate of return for a Como investor is 11%, what is the price of one share of stock today?

[A] $44.28

[B] $28.77

[C] $13.37

[D] $42.14

[E] $48.48

Reference no: EM132658991

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