The Connors Company's last dividend was 1.00. Its dividend growth rate is expected to be constant at

Question:

The Connors Company's last dividend was 1.00. Its dividend growth rate is expected to be constant at 15% for 2 years, after which dividends are expected to grow at a rate of 10% forever. Connors' required return (rs) is 12%. What is Connors' current stock price?

a. 54.91

b. 56.82

c. 58.15

d. 60.07

e. 62.87

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...