Doctors-On-Call,a Newly Formed Medical Group,just Paid a Dividend of €

Multiple Choice

Doctors-On-Call,a newly formed medical group,just paid a dividend of €.50.The company's dividend is expected to grow at a 20% rate for the next 5 years and at a 3% rate thereafter.What is the value of the share if the appropriate discount rate is 12%?

A) €8.08
B) €11.17
C) €14.22
D) €17.32
E) €30.90