A firm does not currently pay dividends. However, 10 years from today the firm will pay a dividend of $2.00 per share (i.e., the dividend per share at t=10 is equal to $2.00). Thereafter, dividends...

Extracted text: A firm does not currently pay dividends. However, 10 years from today the firm will pay a dividend of $2.00 per share (i.e., the dividend per share at t=10 is equal to $2.00). Thereafter, dividends will grow at 3% per year indefinitely. What price would you pay today for one share of stock if the equity cost of capital is 7%? (Hint: draw a cash flow timeline!) O A. $50.00 O B. $27.20 O C. $46.73 D. $25.42