What would be the expected price of a stock when dividends are expected to grow at a 25 percent rate for three years (i.e., until time 3), and then grow at a constant rate of 5 percent, if the stock's required return is 13 percent and next year's dividend will be $4.00?

Question 46 options:

$61.60

$62.08

$68.64

$79.44