John Deere company will pay a dividend of $6 for each of the next 3 years, $8 for each of the years 4-7, and $10 for the years 8-10. Thereafter, starting in year 11, the company will pay a constant dividend of $6/year forever. If you require 14 percent rate of return on investments in this risk class, how much is this stock worth to you?
- $34.54
- $50.50
- $45.68
- $55.99
- $37.77
- $41.46