Consider the valuation of a stock that has a current dividend of $1.00 per share. Dividends are expected to grow at a rate of 15 percent for the next five years. Following that, the dividends are expected to grow at a rate of 10% for five years. After ten years, the dividends are expected to grow at a rate of 5% per year, forever. If the required rate of return is 10%, what is the value of a share of this stock?

a.

$55.12

b.

$38.20

c.

$45.68

d.

$35.14