Westover Winds just paid a dividend of $2.50 per share. The Company will increase its dividend by 8 percent next year and will then reduce its dividend growth rate by 2 percentage points per year until it reaches the industry average of 2 percent dividend growth, after which the company will kepep a constant growth rate forever. What is the price of this stock today given a required return of 12 percent?

Select one:

a. $32.47

b. $28.99

c. $31.82

d. $28.42