5. Due to the introduction of a new product line, earnings and dividends in company A are expected to grow at a rate of 12% for the next 3 years. After this period the firm is expected to resume growth at the industry average of 4% thereafter. The firm recently paid a dicident of $1 and the required return is 19%. What is the most you should pay for the company stock?

a. $7.52

b. none of the listed items is correct

c. $3.53

d. $8.44

e. $24.34