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The most recent annual dividend of Z-Best Ltd. was $0.62 per share. The company is in the fast-growing stage right now, and it grows by

The most recent annual dividend of Z-Best Ltd. was $0.62 per share. The company is in the fast-growing stage right now, and it grows by 100% each year. This growth is expected to last for the following 2 years. After that, the company is expected to grow by 12% indefinitely. The WACC of Z-Best Ltd. is 20%. What is the intrinsic value of the Z-Best Ltd. stock price?

a.

$26.87

b.

$7.75

c.

$22.39

d.

Not enough information to determine

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