Darlington Company has recently discovered a new type of kitty litter which is extremely absorbent. It is expected that the firm will experience (begin-ning now) an unusually high growth rate during the first three years. During this period (3 years) it has exclusive rights to the property where the raw material used to make this kitty litter is found. It is expected to grow at 30% in the first year, 25% in the second year and 20% in the third year. However, beginning with the fourth year the firm's competition will have access to the material, and from that time on the firm will achieve a normal growth rate of 6 percent annually. During the rapid growth period, the firm's dividend payout ratio will be 30% for the first three year. From the fourth year onwards the payout ratio will be 50 percent. Last year's earnings were EO = $2.00 per share, and the firm's required return is 10 percent. What should be the current price of the common stock? $41.21 $38.82 $28.73 $39.16