Prince Vacations Co. just paid a $2.50 dividend. The company is expected to pay a $2.75 dividend next year and a $3.00 dividend in two years. Afterward, the firm expects to mantain a constant dividend growth rate of 5% per year. What is the value of this stock today if the required return on this stock is 9.5%?

Multiple Choice

• $70

• $65.89

• $63.39

• $69.88