A corporation just paid a $3.10 annual dividend on each share. It is planning on increasing its dividend by 17 percent a year for the next 4 years. The corporation will then decrease the growth rate to a rate of 4 percent per year, and keep it that way indefinitely. The required rate of return is 8.60 percent. Calculate the current value of one share of this corporation's stock.

Multiple Choice

$134.44

$109.41

$112.51

$94.42

$131.34