The XYZ Company paid $1.35 dividend yesterday. Its dividend growth rate is expected to be constant at 19.70% for 2 years, after which dividends are expected to grow at a rate of 5.20% forever. Its required return (rs) is 9.85%. What is the best estimate of the current stock price?

$38.55

$30.29

$39.34

$29.50

$40.13

Answer rating: 100% (QA)

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