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What is the value of the company’s stock if the required

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The Erie Heating Company has been very successful in the past four years. Over these years, it paid common stock dividend of $4 in the first year, $4.20 in the second year, $4.41 in the third year, and its most recent dividend was $4.63. The company wishes to continue this dividend growth indefinitely. What is the value of the company’s stock if the required rate of return is 12 percent?

A $38.58

B. $56.00

C. $69.46

D. $66.14

Reference no: EM131142137

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