The company is expected to pay its dividend today of $1.26. One year ago they paid a dividend of $1.20. You expect dividends to continue to grow constantly at the same rate as the past year. You discount this stock at a rate of 11%. What is your assessment of the stock’s price today according to the dividend growth model?
a. $22.05
b. $32.17
c. $24.86
d. $26.15
e. $20.84