Beranek 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 $0.50 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. The forecast of the future dividend stream, along with the forecasted growth rates, is shown below. With a required return of 11.00%, what is the current intrinsic value? 
A) $19.88
B) $20.39
C) $20.91
D) $21.44
Correct Answer:
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