Non-Constant Growth: Mallard Ltd Expects to Pay No Dividends for the Next

Non-constant growth: Mallard Ltd expects to pay no dividends for the next four years. It has projected a growth rate of 35 percent for the next four years. After four years, the company will grow at a constant rate of 6 percent. Its first dividend to be paid in year 5 will be worth $4.25. If your required rate of return is 20 percent, what is the share worth today?

A) $14.64
B) $32.18
C) $36.43
D) $21.82