Acme Corporation just paid a dividend of D 1 = $1.72. Analysts expect the company's dividend to grow by 10% between year 1 and 2, and at a constant rate of 5% from year 2 to 3 and continue with the 5% thereafter. The required return on this low-risk stock is 9.00%. What is the best estimate of the stocks current market value?
a. $41.59
b. $42.65
c. $43.75
d. $44.97
e. $45.99