Thirsty Cactus Corp. just paid a dividend of $1.50 per share. The dividends are expected to grow at 30 percent for the next 8 years and then level off to a 6 percent growth rate indefinitely.

Required :

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

rev: 09_18_2012

$69.70

$95.29

$93.42

$91.56

$2.22