National Warehousing Just Announced It Is Increasing Its Annual Dividend

Multiple Choice

National Warehousing just announced it is increasing its annual dividend to $1.18 next year and establishing a policy whereby the dividend will increase by 3.25 percent annually thereafter.How much will one share of this stock be worth 8 years from now if the required rate of return is 9.5 percent?

A) $24.38
B) $25.68
C) $26.51
D) $27.02
E) $27.37