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Sawchuck Consulting has been profitable for the last 5 years, but it has never paid a dividend. Management has indicated that it plans to pay

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Sawchuck Consulting has been profitable for the last 5 years, but it has never paid a dividend. Management has indicated that it plans to pay a $0.25 dividend 3 years from today, then to increase it at a relatively rapid rate for 2 years, and then to increase it at a constant rate of 8.00% thereafter. Management's forecast of the future dividend stream, along with the forecasted growth rates, is shown below. Assuming a required return of 11.00%, what is your estimate of the stock's current value? Year 0 2 3 Growth rate NA NA NA NA 60% 30% 8.00% 8.00% Dividends $0.000 $0.000 $0.000 $0.25 $0.40 $0.52 $0.56 $0.60 Use the rounded values of dividends (as given in the table above) for your subsequent calculations. Select the correct answer. 1 4 5 7 a $59.43 b. $47.53 C$41.58 d. 553.48 e. 511.83

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