Sankey, Inc., is a fast growth stock and expects to grow at an annual rate of 35 percent for the next three years. It then will settle to a constant-growth rate of 10 percent. The first dividend will be paid out in year 2 and be equal to $3.00. If the required rate of return is 18 percent, what is the current price of the stock?
$38.51
$47.19
$51.56
$65.68