Can't Hold Me Back,Inc

Can't Hold Me Back,Inc. is preparing to pay its first dividends. It is going to pay $1.00,$2.50,and $5.00 a share over the next three years,respectively. After that,the company has stated that the annual dividend will be $1.25 per share indefinitely. What is this stock worth to you per share if you demand a 7% rate of return?

A) $7.20
B) $14.48
C) $18.88
D) $21.78
E) $25.06

Correct Answer:

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