Growing, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid a dividend of $7.50. You believe that dividends will grow at a rate of 17.0% per year for three years, and then at a rate of 6.0% per year thereafter. You expect that the stock will sell for $233.20 in three years. You expect an annual rate of return of 13.0% on this investment. If you plan to hold the stock indefinitely, what is the most you would pay for the stock now?

Question 9 options:

1)

$135.69

2)

$150.19

3)

$185.75

4)

$114.59

5)

$162.59