The most recent dividend from Disney was $3.64. The growth rate for year 1 is expected to be 5% and the growth rates for years 2 and 3 will be 5.5% and 6.7%, respectively. After year 3, the dividend will grow annually at 2% per year forever. If your discount rate is 8%, what is the value of the Disney stock?

Multiple Choice

• 65.43

• 68.47

• 61.63

• 71.63

• 79.63