Assume that you own an annuity that will pay the last dividend paid by coppard inc. was $1.25. the dividend growth rate is expected to be constant at 5% for 3 years, after which dividends are expected to grow at a rate of 6% forever. if the firm's required return (rs) is 11%, what is its current stock price? select the correct answer. a. $26.68 b. $28.46 c. $25.79 d. $29.35 e. $27.57 you $15,000 per year for 12 years, with the first payment being made today. you need money today to start a new business, and your uncle offers to give you $120,000 for the annuity. if you sell it, what rate of return would your uncle earn on his investment?
a. 6.85%
b. 7.21%
c. 7.59%
d. 7.99%
e. 8.41%