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Just Ben, Inc. is currently growing much faster than the economy and it is expected Just Ben has two stages of growth. Expected growth of

Just Ben, Inc. is currently growing much faster than the economy and it is expected Just Ben has two stages of growth. Expected growth of the company is 10% for each of the next three years; then it expected to settle down to a constant 5% growth rate thereafter. The dividend last year was $2.00. Investors' required return on stocks of similar risk is 12%. What is the expected price (P) of Just Ben at the end of the first stage of growth (within 25 cents)?
$48.17
$39.93
$34.15
$41.72
$28.37
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