The Cart Wheel plans to pay an annual dividend of $1.20 per share next year, $1.00 per share a year for the following two years, and then cease paying dividends altogether. How much is one share of this stock worth to you today if you require a 17 percent rate of return?
A.$2.83
B. $2.43
C. $2.56
D. $2.60
E. $2.60.
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