Stewart Industries Expects to Pay a $3

Stewart Industries expects to pay a $3.00 per share dividend on its common stock at the end of the year (D1 = $3.00) . The dividend is expected to grow 25 percent a year until t = 3, after which time the dividend is expected to grow at a constant rate of 5 percent a year . The stock's beta is 1.2, the risk-free rate of interest is 6 percent, and the rate of return on the market is 11 percent. What is the company's current stock price?

A) $29.89
B) $30.64
C) $37.29
D) $53.69
E) $59.05