You are analyzing the stock of Apex Hardware, Inc. (NasdaqGS: AH). The current market price of AH is $53.55. The company's dividend per share for the last fiscal year was $2.00. You expect the dividend to increase by 10 percent for the next three years and then increase by 5 percent per year forever. You estimate the required return on equity of AH to be 10 percent. Estimate the value of AH using a two-stage dividend discount model. 1) $35.88 2) $40.88 3) $48.00 4) $53.55 5) $57.89