Latcher AB Is a Relatively New Firm That Is Still

Multiple Choice

Latcher AB is a relatively new firm that is still in a period of rapid development.The company plans on retaining all of its earnings for the next six years.Seven years from now,the company projects paying an annual dividend of €.25 a share and then increasing that amount by 3% annually thereafter.To value this equity as of today,you would most likely determine the value of the share _____ years from today before determining today's value.

A) 4
B) 5
C) 6
D) 7
E) 8