Synovec Corporation is expected to pay the following dividends over the next four years : $6.40, $ 7.40,\$22.40 , and $4.20 . Afterward , the company pledges to maintain a constant 6 percent growth rate in dividends forever If the required return on the stock is 10 percent , what is the current share price ? (Do not round intermediate calculations and round your answer to 2 decimal places , e. g. 32.16.)

i believe the correct answer is b.

b. 6

step-by-step explanation:

we are given the table representing an exponential function.

we can see from the table that, as x is increasing, the value of y is increasing in the power of 6.

i.e. the following relation is obtained,

x = 1, y = 6

x = 2, y = 36 =

x = 3, y = 216 =

x = 4, y = 1296 =

x = 5, y = 7776 =

so, the geometric series obtained is .

thus, the common ratio is given by = = 6.

hence, the common ratio is 6.