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 1 2 3 4 5 6

Growth rate NA NA NA NA 80% 40% 8.00%

Dividends $0.000 $0.000 $0.000 $0.90 $1.26 $1.36 $1.47

Use the rounded values of dividends (as given in the table above) for your subsequent calculations.

Select the correct answer.

A$28.57

B $28.69

C $28.58

D $28.68

E $28.61