Nachman Industries just paid a dividend of D0 = $1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is the best estimate of the stock's current market value? why?
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A.
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$41.59
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B.
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$42.65
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C.
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$43.75
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D.
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$44.87
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E.
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$45.99
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