P2 Lilo and Stitch, Co. paid a dividend of $1 on $4 of earnings last year. Earnings and dividends are expected to grow at 30% over the next 2 years. After 2 years, the growth rate is expected to slow to 5%. Using an appropriate discount rate of 10% and a 2-stage DDM, what is the intrinsic value of its stock? D D2 D V. + + (1+r)? (1+r)2 (1+r)? (1+r)? . (1+r)? (This implements the 2-stage DDM, where D2 (1 +92) D2 + P2 P2 k - 92 and Stable Growth Plus D. (1+8.) P = (-8) 3.0095 Growth rate in stable Passe- Fi Dividend (T+1) Sable Growth Plasse- Price at end of Initial Growth Phuc (PT)- Values of Stable Geww ws - 547.83 $27.251 Note that this is also the formula used in the 2-stage DDM spreadsheet, if T=2, then DOM W Control Grow Stock Value = Select one: O a. $38.39 O b. $114.32 O c. $35.40 O d. $29.26 O e. $31.84