Question: Stewart Industries expects to pay a $3/share dividend at the end of the year (D1 $3.00), which is expected to grow at a rate of 25 percent a year until t 3, and then at a constant rate of 5 percent, thereafter (D3 $4.6875 and D4 $4.921875). The stock's beta is 1.2, the risk-free rate of interest is 6 percent, and the expected rate of return on the market portfolio is 11 percent. Calculate the company's current stock price?
[A] $37.29
[B] $53.69
[C] $59.05
[D] $29.89
[E] $30.64