River Rock, Inc., just paid an annual dividend of $2.80. The company has increased its dividend by 2.5 percent a year for the past 10 years and expects to continue doing so. What will a share of this stock be worth 6 years from now if the required return is 16 percent?
A. $23.60
B. $24.65
C. $25.08
D. $25.50
E. $26.90
Ans: B. $24.65
Business
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