A firm recently paid a $2.70 annual dividend. The dividend is expected to increase by $0.30 in each of the next two years. In the second year, the stock price is expected to be $30. If the required rate for this stock is 10 percent, what is its price? Hint: Estimate the present value of the expected cash flows. Do not include the dividend recently paid. 31.25 30.25 31.10 31.75