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Business, 10.04.2020 22:29 Krch1401

Zoom Tech, Inc. has been growing fast and just announced today that it will begin paying annual dividends next year. Dividends for the first three years will be $0.25, $0.50, and $0.75 a share, respectively. After that, dividends are projected to increase by 6 percent per year. What is one share of this stock worth today at a required return of 12.5 percent?
a. $11.54
b. $8.52
c. $12.23
d. $7.84
e. $9.73

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