Use the Combined Dividends & Earnings Model to find this companys firm value. Forecast the cash flows for t+1 to t+3.

EPSt+1	$1.27
Divt+1	0.10
Avg. DPO	0.08
g	0.10
r	0.20
Avg. P/E	12.1
Shares outstanding	530,000

Group of answer choices

	t	t+1	t+2	t+3
EPS		1.27	1.40	1.54
Dividend		0.10	0.11	0.12
Expected sale price				18.63
Total cash flow		0.10	0.11	18.75
NPV	$11.01
Firm value	$5,835,300

	t	t+1	t+2	t+3
EPS		1.38	1.66	1.99
Dividend		0.14	0.17	0.20
Expected sale price				25.78
Total cash flow		1.52	1.82	25.97
NPV	$29.31
Firm value	$15,534,300

	t	t+1	t+2	t+3
EPS		1.25	1.35	1.45
Dividend		0.25	0.27	0.29
Expected sale price				17.55
Total cash flow		1.50	1.62	17.84
NPV	$20.96
Firm value	$11,108,800

None of the answers is correct.