The Ramirez Company's last dividend was $1.75.Its dividend growth rate is expected to be constant at 22% for 2 years,after which dividends are expected to grow at a rate of 6% forever.Its required return (rs) is 12%.What is the best estimate of the current stock price? Do not round intermediate calculations.
A) $33.35
B) $44.73
C) $40.67
D) $39.04
E) $44.33
Correct Answer:
Verified
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