The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 15 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 $2.20 per share. What is the current value of one share of this stock if the required rate of return is 7.70 percent?

Multiple Choice

• $151.84

• $111.22

• $123.81

• $121.61

• $149.64