Galloway,Inc

Multiple Choice

Galloway,Inc.has an odd dividend policy.The company has just paid a dividend of $7 per share and has announced that it will increase the dividend by $2 per share for each of the next 5 years,and then never pay another dividend.How much are you willing to pay per share today to buy this stock if you require a 15 percent return?

A) $27.08
B) $34.15
C) $41.72
D) $42.60
E) $43.33