WHAT WOULD BE THE PRICE OF A STOCK TODAY WHEN DIVIDENDS ARE EXPECT...

19. What would be the price of a stock today when dividends are expected to

grow at a 25 percent rate for three years, then grow at a constant rate of 5

percent forever, if the stock's required rate of return is 13 percent and next year's

dividend will be $4?

A) $61.60

B) $62.08

C) $68.64

D) $79.44