Ernie Banks Corp. just paid a dividend of $1 per share and plans to pay dividends of $1.5 per share for the next 5 years. After that, it expects to increase dividends by 5% indefinitely. An appropriate required return for the stock is 9%. Using the multistage DDM, the stock should be worth __________ today.

Question 5 options:

	$31.43
	$25.25
	$32.54
	$39.38
	$12.86