Passion Frost Inc. will pay a dividend of P1.50 a share next year.

Strategies:

1. Continuing the present strategy will result in the expected growth rate at a 9% annual rate indefinitely and required rate of return of 13%.

2. Expanding timber holdings and sales will increase the expected dividend growth rate to 11% but will increase the risk of the company. As a result, the rate of return required by investors will increase to 16%.

3. Integrating into retail stores will increase the dividend growth rate to 10% and increase the required rate of return to 14%.

Question: From the standpoint of market price per share, which strategy is best? Why?