9) Analysts predict that East Toys Inc. will pay dividends of $3 per share in year 1, $3.5 per share in

year 2, and $3.8 per share in year 3. The firm then expects its dividend to decrease by 5% per year for

three years (year 4,5,6). Thereafter the dividends will grow at 6% indefinitely. The required rate of

return is 10%. What is the value of the stock today?

a) $48.94

b) $59.55

c) $39.45

d) $32.81

e) None of the above

Please don't use excel