Assume that a company’s dividends per share are projected to grow at 4% each year for next two years and then grow at 2% onward. Its next-year’s dividend per share is $1.20, and its cost of equity capital is 5%. The company’s per-share stock price is close to (Hint: Recall how we compute the stock price when the dividend grows at two growth rates. You will have to go through the process below) ß growth=4% àßgrowth=2% à Year 0 1 2 3 Dividend, D D1= $1.2 D2= ? D3= ? Terminal Value, TV TV=? Present Value (PV) of D1 = ? D2 = ? TV= ? Stock Price at year 0=PV of D1 +PV of D2+PV of TV A) $ 20.22 B) $28.45 C) $38.50 D) $40.76