A7X Corporation just paid a dividend of $1.25 per share. The dividends are expected to grow at 40 percent for the next 8 years and then level off to a growth rate of 6 percent indefinitely.

If the required return is 14 percent, what is the price of the stock today?

Multiple Choice

• $3.55

• $85.69

• $116.05

• $113.78

• $111.50