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McLoed company expects its last paid dividend of $ 4 . 7 5 to grow at a constant rate of 1 . 5 % for

McLoed company expects its last paid dividend of $4.75 to grow at a constant rate of 1.5% for 2 years. Most analysts expect the dividend to then grow at a rate of 8.0% for the forseable future. McLoed investors have a required rate of return for equaity of 12.0%. What price are investors willing to pay for McLoed?
a. $113.54
b. $128.30
c. $90.83
d. $112.40
e. $122.62

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