Nu-Tech Is Expecting a Period of Intense Growth and Has

Multiple Choice

Nu-Tech is expecting a period of intense growth and has decided to reduce its annual dividend by 10 percent a year for the next two years.After that,it will maintain a constant dividend of $.70 a share.The company just paid $1.80 per share.What is the value of this stock if the required rate of return is 13 percent?

A) $6.99
B) $6.79
C) $8.22
D) $8.87
E) $7.62