You are following a 3 year buy-hold strategy for the purchase of Home Depot stock.

The firm expects to pay a dividend by the end of year 3 in the

amount of $3.87 (D3 = $3.87).

The expected growth rate in earnings over the next 3 years is 5.50%

The expected rate of return on Home Depot is 18.75%.

How much are you willing to approximately pay for Home Depot today?

Po = $26.24

Po = $35.71

Po = $27.01

Po = $25.71