Namath Corporations stock is expected to pay a dividend of $1.25 per share at the end of the year. The dividend is expected to increase by 12 percent for the following year. After that, the dividend is expected to increase at a constant rate of 8 percent per year. The stock has a required return of 10 percent. What should be the price of the stock today?

A.

$67.91

B.

$66.38

C.

$70.60

D.

$64.77

E.

$69.32