Stag Corporation is expected to pay dividends of $4.75, $5.25, $5.75, and $7 for the next four years. Thereafter, the company expects its growth rate to be at a constant rate of 7%. The required rate of return is 15%.
What is the market price of the stock at the end of four years?
Group of answer choices
a. $87.50
b. $57.54
c. $93.63
d. $69.42
Based on the given data, pls find below workings, steps and answer:
Answer (d) $ 69.42
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