What is the current value of Bandag Inc. to an investor who has a required rate of return of 12%? The current dividend is $1.00 and the dividends are expected to grow 8% per year for 3 years. At the end of the 3 years the investor expects to sell the security for $76.
A. $79.51
B. $56.90
C. $51.13
D. $76.00
Please show work and/or calculator inputs.