MC algo $8-37$ Nonconstant Dividends

New Gadgets, Incorporated, currently pays no dividend but is expected to pay its first annual

dividend of $$5\mathrm{.}60$ per share exactly $9$ years from today. After that, the dividends are expected to

grow at $3\mathrm{.}3$ percent forever. If the required return is $12\mathrm{.}7$ percent, what is the price of the stock today?

Multiple Choice

$$59\mathrm{.}57$

$$20\mathrm{.}31$

$$22\mathrm{.}89$

$$45\mathrm{.}95$

$$26\mathrm{.}71$