A firm recently paid an $8.70 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 $90. 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. 91.25 91.75 90.25 91.10