The Felix Corp

Multiple Choice

The Felix Corp.will pay an annual dividend of $1.00 next year.The dividend will increase by 12 percent a year for the following two years before growing at 4 percent indefinitely thereafter.If the required rate of return is 10 percent,what is the stock's current value?

A) $13.38
B) $14.05
C) $19.11
D) $9.80
E) $10.38