As a security analyst, you are covering Aura Electronics (NASDAQ: AE) which is a large manufacturer and distributor of electronic devices. You have studied the historical growth rates in sales, earnings, and dividends for AE, and also have made projections of future growth rates. You expect the current dividend of $2.00 to grow at 10 percent for the next three years, and then the growth rate will decline to 5 percent and remain at that level thereafter. You feel that your estimate of AE's beta is unreliable, so you use the bond yield plus risk premium method to estimate the required rate of return on the stock. The yield to maturity of AE's long-term bond is 6.0 percent. Adding a 4.0 percent risk premium to the yield-to-maturity gives a required return of 10.0 percent. The current market price of AE is $40.00. What is the intrinsic value of AE using the two-stage DDM? O A) $23.60 OB) $35.55 OC) $40.00 OD) $45.50 E) $48.00