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You were hired as a consultant for Jib Jab Inc., which has just paid a dividend of D=$1.25. You have analyzed the company and concluded

You were hired as a consultant for Jib Jab Inc., which has just paid a dividend of D=$1.25. You have analyzed the company and concluded that the company's dividend will grow by 20% in Year 1, by 10% in Year 2, and at a constant rate of 5% in year 3 and thereafter. The required return on this stock is 9%. What is your estimate for the stock's current market value? The market data suggest that the stock is currently trading in the range of $40.69 and $42.81. What is your advice for potential investors?

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