Monash Co. pays dividends annualy and has a current dividend of $7 per share. It is expected to grow at a rate of 25% per annum for the next 2 years, 20% for the following 3 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)

$123.89

b)

$153.98

c)

$198.35

d)

$135.98

e)

$189.53