Question $7$

DFG common stock is expected to have extraordinary growth of $20\%$ per year for two years, at which time

the growth rate will settle into a constant $6\%.$ If the discount rate is $15\%$ and the most recent dividend was

$$2\mathrm{.}50,$ what should be the current share price?

$($a$)$ $$31\mathrm{.}16$

$($b$)$ $$33\mathrm{.}23$

$($c$)$ $$37\mathrm{.}39$

$($d$)$ $$47\mathrm{.}77$