Agarwal Technologies Was Founded 10 Years Ago A)$ 994
B)$10

Agarwal Technologies was founded 10 years ago.It has been profitable for the last 5 years, but it has needed all of its earnings to support growth and thus has never paid a dividend.Management has indicated that it plans to pay a $0.25 dividend 3 years from today, then to increase it at a relatively rapid rate for 2 years, and then to increase it at a constant rate of 8.00% thereafter.Management's forecast of the future dividend stream, along with the forecasted growth rates, is shown below.Assuming a required return of 11.00%, what is your estimate of the stock's current value?

$\begin{array}{llllllll}\text {year }&0&1&2&3&4&5&6\\\text { Growthrate } & \text { NA } & \text { NA } & \text { NA } & \text { NA } & 50.00 \% & 25.00 \% & 8.00 \% \\\text { Dividends } & \$ 0.000 & \$ 0.000 & \$ 0.000 & \$ 0.250 & \$ 0.375 & \$ 0.469 & \$ 0.506\end{array}$

A) $ 9.94
B) $10.19
C) $10.45
D) $10.72
E) $10.99