Latcher's Is a Relatively New Firm That Is Still in a Period

Multiple Choice

Latcher's 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 percent annually thereafter.To value this stock as of today,you would most likely determine the value of the stock ________ years from today before determining today's value.

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