Assume merck (mrk) just announced that its next dividend will be $2, paid one year from now (you just missed the prior annual dividend). you expect the dividend will grow (after the $2 dividend) by 3% per year forever. your required return is 10%. what are you willing to pay for a share of merck stock?

answer; ///i believe the correct answer is(e) complementary to each other;

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%

answer; commerce clearing house;