Assume that ABC Ltd has a current growth rate of 10% p.a. that is expected to be maintained for only another three years and then fall to 3% p.a., where it is expected to remain indefinitely. Given that the required return on ABC's shares is 12% and that the last dividend of 50 cents has just been paid, the price of ABC's shares will be:

$9.41

Y$8.56

$6.87

$7.48

$10.80