What will be the price of this stock eleven years from now

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Problem 1: Niagara Inc. will pay its first dividend of $1.50 per share 7 years from now and will increase the dividend at a constant rate of 5% per year thereafter. If the required return on the company's stock is 10%, what will be the price of this stock 11 years from now?

Multiple Choice

Option 1: $38.29
Option 2: $51.31
Option 3: $30.00
Option 4: $36.47
Option 5: $53.88

Reference no: EM132864860

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