Timber Co Just Paid Its Annual Dividend of $3

Multiple Choice

Timber Co. just paid its annual dividend of $3.82 and expects to reduce this payout by 6 percent each year, indefinitely. What is the per share value of this stock if you require a return of 14.5 percent?

A) $34.79
B) $17.52
C) $18.27
D) $42.24
E) $39.15