Considering purchasing a stock

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Reference no: EM13952354

You are considering purchasing a stock, and will sell it for $100 per share in 2 years. Dividends per share were $2 per share this year, but you expect them to increase at 20% per year for the next 2 years – and would receive them in years 1 and 2. Your annual MARR is 15%. What is the most you would be willing to pay per share for this stock now?

a) $73.71

b) $74.42

c) $75.98

d) $76.88

e) $78.20

f) $79.88

Reference no: EM13952354

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