Shasta Co just paid a dividend of $1.65 (D0) on its common stock. This company's dividends are expected to grow at a constant rate of 3% indefinitely.
Required:
Quesiton: If the required rate of return on this stock is 11%, compute the current value per share of Shasta stock.
A. $15.00
B. $20.63
C. $21.24
D. $55.00
Note: Explain all calculation and formulas.