question 10

YUestion iv Microsoft is expanding rapidly in the Cloud technology and currently needs to Yetain all of its earnings. It recently paid a dividend in the amount of $6.00 per share. This dividend is expected to grow each year at the following growth rates: Year 1. 20% Year 2. 25% Year 3. 35% After year three, the growth rate is expected to resume a normal 8% The firm has a required rate of return in the amount of 12% What is the current value of Microsoft? (A) P0=$245.75 (B) P0=$255.75 (C) P0=$258.57 (D) Po =$265.75