Today your company paid a dividend (D0) of $3 per share. The growth rate of the dividend is expected to be 10% for the next two years, and then 6% thereafter. The cost of capital is 10%. For each question, choose the closest answer.

31. What is your estimate of your firms stock price two years from now (P2)?

    a) $96.20 b) $79.55 c) $85.55 d) $78.31 e) $72.31