The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 19 percent a year for the next 4 years and then decreasing the growth rate to 4 percent per year. The company just paid its annual dividend in the amount of $1.90 per share. What is the current value of one share of this stock if the required rate of return is 7.40 percent?

Multiple Choice

• $99.38

• $118.45

• $116.55

• $87.59

• $97.48