Smith Construction, Inc. just paid a $2.78 dividend. The dividend is expected to grow by 4% each year for the next three years. After that the company will never pay another dividend ever again. If your required return on the stock investment is 10%,what should the stock sell for today? A) $7.46
B) $28.91
C) $46.33
D) $15.63

A) $7.46

Explanation:

The computation of the stock sell for today is given below:

D1 = 2.78 × (1.04)

= 2.89

D2 = 2.89 × (1.04)

= 3.01

D3 = 3.01 × (1.04) = 3.13

Now the price of the stock is

= 2.89 ÷ (1.1) + 3.01 ÷ (1.1)^2 + 3.13 ÷ (1.1)^3

= $7.46

hence, the correct option is a.

The same should be considered and relevant

the correct answer option is b. a single paragraph.

explanation:

when you are thinking about paragraph​ topics, you should always choose a subject that can be adequately addressed in a single paragraph.

a paragraph is a piece of writing consisting of a few sentences that deal with a single theme. it has only a single idea that the paragraph revolves around and talks about.

so a paragraph topic must be chosen wisely where a single idea can be communicated in a single paragraph.