What is the stock worth today of art company

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Problem 1: ART Company just paid a dividend of $2.00. The dividend is expected to grow by 10% this year, 9% in year two and 6% in year three. Then, beginning in year four, the dividend will begin growing at a constant rate of 4%. With a required return of 10%, what is the stock worth today?

Group of answer choices

Option 1: $32.37

Option 2: $29.21

Option 3: $36.42

Option 4: $38.99

Reference no: EM132920767

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