Mack Industries just paid a dividend of $5 per share (DO = $5). Analysts expect the company's dividend to grow 7 percent this year (D1 = $5.35) and 5 percent next year. After two years the dividend is expected to grow at a constant rate of 3 percent. The required rate of return on the company's stock is 16 percent. What should be the company's current stock price? O $49.86 O $41.86 $43.86 O $45.86 O $47.86

Mack Industries just paid a dividend of $5 per share (D0=$5). Analysts expect the company's dividend to grow 7 percent this year (D1=$5.35 ) and 5 percent next year. After two years the dividend is expected to grow at a constant rate of 3 percent. The required rate of return on the company's stock is 16 percent. What should be the company's current stock price? $49.86 $41.86 $43.86 $45.86 $47.86