The XYZ Company paid $1.05 dividend yesterday. Its dividend growth rate is expected to be constant at 21.30% for 2 years, after which dividends are expected to grow at a rate of 5.45% forever. Its required return (rs) is 9.85%. What is the best estimate of the current stock price?
Answer is either:
a) $39.42
b) $32.46
c) $37.76
d) $33.12
e) $24.84