Neumann is estimating the value of RAND Corporation using the dividend growth model. He expects the next dividend will be $13.80, and grow at a rate of 5.60% per year after that. With a required return of 8.80%, what price should he have for the company?
Multiple Choice
a) $52.51
b) $431.25
c) $455.40
d) $469.20
e) $156.82