You Are Considering the Purchase of a Common Stock That

You are considering the purchase of a common stock that paid a dividend of $2.00 yesterday.You expect this stock to have a growth rate of 15 percent for the next 3 years,resulting in dividends of
D1 = $2.30,D2 = $2.645,and D3 = $3.04.The long-run normal growth rate after year 3 is expected to be
10 percent (that is,a constant growth rate after year 3 of 10% per year forever) .If you require a 14 percent rate of return,how much should you be willing to pay for this stock?

A) $89.75
B) $83.65
C) $56.46
D) $62.57