The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 16 percent a year for the next 4 years and then decreasing the growth rate to 5 percent per year. The company just paid its annual dividend in the amount of $3.00 per share. What is the current value of one share of this stock if the required rate of return is 8.50 percent?

Multiple Choice

• $134.81

• $165.96

• $131.81

• $162.96

• $117.59