You are considering taking over one of your competitors. The competitor is projected to pay a dividend of $4.75 per share at the end of one year from now. The dividend is expected to grow by 2% by the end of year two and similarly every year thereafter. The appropriate risk adjusted discount rate is 10% per year. How much are you prepared to pay per share? Select one:

51.97

$61.88

$59.38

. $58.03