A Stock Is Expected to Pay a Dividend of $0

Multiple Choice

A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock's current price?

A) $17.39
B) $17.84
C) $18.29
D) $18.75
E) $19.22