Farmco Just Paid Its Annual Dividend of

Farmco just paid its annual dividend of $.32 per share. The dividends are expected to grow at 25 percent annually for the next 4 years and then level off to an annual growth rate of 3 percent indefinitely. What is the price of this stock today given a required return of 15 percent?

A) $7.54
B) $7.32
C) $6.03
D) $5.42
E) $9.01