The Naboo Corporation announced today that they will start paying annual dividends. Their first dividend of $0.67 per share will be paid next year. Their following dividends will be $0.72, $0.87, and $1.17 per share annually for the following three years, respectively. Thereafter, dividends are forecasted to increase by 3.7% per year. What stock price would you expect today if the required rate of return is 11%?

Multiple Choice

• $13.54 per share

• $15.81 per share

• $14.52 per share

• $16.62 per share

• $18.35 per share