number 10

10. Oprah Industries just paid a dividend of DO = $1. 25. Analysts expect the company's dividend to grow by 20% this year, by 15% in Year 2, and at a constant rate of 7% in Year 3 and thereafter. The required return on this low-risk stock is 9%. What is the best estimate of the stock's current market value?* OA) $77.7 O B) $80.5 O C) $85.8 OD) $92.3 O E) None of the above