Monash Co. pays dividends annually and has a current dividend of $7 per share. It is expected to grow at a rate of 25% per annum for the next 5 years, after which dividends stop growing. Dividends are still paid into perpetuity after the growth period. The company has a required rate of return of 12%, calculate the current implied price of the share.

a)

$150.26

b)

$125.06

c)

$160.25

d)

$120.62

e)

$105.26