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19. Suppose a firm is expected to increase dividends by 20% in one year and by 15% in two years. After that, dividends will increase

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19. Suppose a firm is expected to increase dividends by 20% in one year and by 15% in two years. After that, dividends will increase at a rate of 5% per year indefinitely. If the next dividend is $1.20 and the required return is 20%, what is the price of the stock? * A. $6.51 B. $7.81 C. $8.67 D. $9.64 O E. $9.66

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