A company currently has earnings (E) of $4.50 and a dividend (D) of $0.45. The firm's current return on equity (ROE) is 40%. The firm will maintain the same dividend payout and ROE over the next two periods. Then it will transition in a linear reduction in years 3, 4, and 5 to a growth of 3%. The firm will then grow at 3% to perpetuity. The firm's beta is presently 1.5, but this will transition to 1 over the same period. The risk- free rate is 4% and the market risk premium is 6%. Constant growth ROE is expected to be 10%. What is the present value of this firm's equity using a three-stage model with linear transition in years 3, 4, and 5? $64.29 $82.18 $76.38 $84.07