The XYZ Company paid $1.05 dividend yesterday. Its dividend growth rate is expected to be constant at 21.30% for 2 years, after which dividends are expected to grow at a rate of 5.45% forever. Its required return (rs) is 9.85%. What is the best estimate of the current stock price?

Answer is either:

a).$39.42

b)$32.46

c).$37.76

d).$33.12

e).$24.84