Nu-Tek,Inc

Multiple Choice

Nu-Tek,Inc.is expecting a period of intense growth,so it has decided to reduce its annual dividend by 10 percent a year for the next 3 years.After that,it will maintain a constant dividend of $1.90 a share.Last year,the annual dividend was $2.70 a share.What is the market value of this stock if the required rate of return is 15 percent?

A) $13.86
B) $13.39
C) $14.88
D) $14.23
E) $14.15