Springboro Tech is a young start-up company. No dividends will be paid on the stock over the next 10 years, because the firm needs to plow back its earnings to fuel growth. The company will pay a $9.5 per share dividend in 11 years (D11=$9.5) and will increase the dividend by 3 percent per year thereafter. What is the current share price if the required return on this stock is 7 percent?
$128.59
$119.12
$118.22
$120.73
$140.00