Problem:
Huang Company's last dividend was $1.25. The dividend growth rate is expected to be constant at 15% for 3 years, after which dividends are expected to grow at a rate of 6% forever.
Required:
If the firm's required return (rs) is 11%, what is its current stock price?
Choose one answer.
A. $31.52
B. $30.57
C. $32.49
D. $33.50