Tim Taylor Tools Is a Young Start-Up Company

Tim Taylor Tools is a young start-up company.No dividends will be paid on the stock over the next eight years because the firm needs to plow back its earnings to fuel growth.The company will then pay a $9 per share dividend in year 8 and will increase the dividend by 4 percent per year thereafter.If the required return on this stock is 12 percent,what is the current share price?

A) $42.64
B) $45.44
C) $57.23
D) $81.95
E) $100.13