Nu-Tek,Inc

question 23

Multiple Choice

Nu-Tek,Inc.is expecting a period of intense growth,so it has decided to reduce its annual dividend by 10 percent a year for the next 3 years.After that,it will maintain a constant dividend of $1.90 a share.Last year,the annual dividend was $2.70 a share.What is the market value of this stock if the required rate of return is 15 percent?

• A)$13.86
• B)$13.39
• C)$14.88
• D)$14.23
• E)$14.15

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