F Minus Notes Is a Publicly Traded Company

Multiple Choice

F Minus Notes is a publicly traded company.The last dividend paid was $4 per share.Dividends are paid annually,and they are expected to increase 5 percent per year for the next five years,then increase 10 percent per year thereafter.The discount rate associated with F Minus Notes common stock is 20 percent.What should be the current price of F Minus Notes stock?

A) $36.21
B) $33.13
C) $47.55
D) $50.72
E) $31.59