Multiple Choice
Mother and Daughter Enterprises is a relatively new firm that appears to be on the road to great success. The company paid its first annual dividend yesterday in the amount of $.28 a share. The company plans to double each annual dividend payment for the next three years. After that time,it is planning on paying a constant $1.50 per share indefinitely. What is one share of this stock worth today if the market rate of return on similar securities is 11.5%?
A) $9.41
B) $11.40
C) $11.46
D) $11.93
E) $12.43
Correct Answer:

Verified
Correct Answer:
Verified
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