7. Chapter MC, Section .07, Problem 080. Algo McGaha Enterprises expects earnings and dividends to grow at a rate of 44% for the next 4 years, after the growth rate in earnings and dividends will fall to zero, i.e., g = 0. The company's last dividend, Do, was $1.25, its beta is 1.20, the market risk premium is 5.50%, and the risk-free rate is 3.00%. What is the current price of the common stock? Select the correct answer. Oa. $49.90 Ob. $50.64 Oc. $48.42 Od. $51.38 Oe. $49.16