You Are Considering the Purchase of a Common Stock That

You are considering the purchase of a common stock that just paid a dividend of $2.00.You expect this stock to have a growth rate of 30 percent for the next 3 years,then to have a long-run normal growth rate of 10 percent thereafter.If you require a 15 percent rate of return,how much should you be willing to pay for this stock?

A) $71.26
B) $97.50
C) $82.46
D) $79.15
E) $62.68