An analyst has forecast that Apex Company, which currently pays a dividend of $6.00, will continue to grow at 8 percent for the next two years and then at a rate of 5 percent thereafter. If the required return is 10 percent, based on a two-stage model what is the current value of Apex shares? A) $126.24. B) $133.13. C) $127.78. D) $131.17.

I get B

B

B as well

133.13 - B

I get $133.13454545 so that makes it B in my book.

B for confidence BOOSTER.

1 2 2 6.480 6.9984 147 1.100 1.2100 1.2100 5.891 5.784 121.460 133.13 B