The Ramirez Company's last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are expedited to grow at a rate of 6% forever. Its required return(rs) is 12%. What is the best estimate of the current stock price?
a. $41.58 b. 42.64 c. 43.71 d. 44.80 e. 45.92
Please calculate out your answer and show work!