A security analyst estimates the dividends over the next three years for Kennesaw Corp. to be $1.75, $2.35 and $3.15, respectively. The analyst also expects that the Kennesaw Corp. dividend will grow at a constant rate of 4% forever after the third year. What is the price per share estimate if the required rate of return is 14%?

Question 20 options:

1)

$24.85

2)

$25.74

3)

$26.15

4)

$27.58