2

For the stock of Cale's Colorless Coffee, LLP., the next 3 annual dividends have been forecasted (consensus) as : $2.92, $3.43, and $3.26. If the terminal growth rate is 3.3%, and the cost of equity is 20.85%, what is the price TODAY?

Select one:

a.

$12.05

b.

$21.34

c.

$25.81

d.

$17.49

e.

$6.61

f.

insufficient information to determine

g.

$25.19