10. Strand Sailing, Inc. has earnings of $3 per share and is expected to pay a dividend of $2.20 per share for the next three years. The growth rate for Strand's earnings is expected to be about 8 percent per year for at least the next four years. If the required rate of return on Strand's stock is 11 percent, and the PE ratio for similar companies in three years is expected to be 14, use the combined method to value Strand's stock.

$47.16

59.34

63.74

43.39