Homework answers / question archive / A share of AAA pays a dividend of $4 in every year, beginning one year from today

A share of AAA pays a dividend of $4 in every year, beginning one year from today

Finance

Share With

A share of AAA pays a dividend of $4 in every year, beginning one year from today. The interest rate is 5%. Using the dividend/sales approach, what should be the price of AAA today? Choose the nearest answer.

A 80 B 3.8 C 125 D 4.2