Lifecycle Motorcycle Company Is Expected to Pay a Dividend in Year

Lifecycle Motorcycle Company is expected to pay a dividend in year 1 of $2.00,a dividend in year 2 of $3.00,and a dividend in year 3 of $4.00.After year 3,dividends are expected to grow at the rate of 7% per year.An appropriate required return for the stock is 12%.Using the multistage DDM,the stock should be worth __________ today.

A) $63.80
B) $65.13
C) $67.95
D) $85.60