Florida Sports Magazine Is a Publicly Traded Company

Florida Sports Magazine is a publicly traded company.The next dividend will be paid in one year and is expected to be $1.25 per share.Dividends are expected to grow at 10 percent a year for the next three years,and then grow at 8 percent a year thereafter.The appropriate discount rate for investing in this firm is 15 percent.What should be the current stock price?

A) $21.27
B) $10.76
C) $22.40
D) $17.33
E) $18.75