Micro Corp. just paid dividends of $2 per share. Assume that over the next three years dividends will grow as follows, 5 percent next year, 15 percent in year two, and 25 percent in year 3. After that growth is expected to level off to a constant growth rate of 10 percent per year. The required rate of return is 15 percent.

Calculate the intrinsic value using the multistage model.

a. $5.56

b. $43.66

c. $35.21

d. $49.31

e. $66.4