Thirsty Cactus Corp. just paid a dividend of $1.30 per share. The dividends are expected to grow at 35 percent for the next 9 years and then level off to a 7 percent growth rate indefinitely.

Required :

If the required return is 13 percent, what is the price of the stock today?

rev: 09_18_2012

$143.58

$146.51

$114.94

$149.44

$4.11