Smart investments last dividend was 175 its dividend growth


Smart Investment's last dividend was $1.75. It's dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are expected to grow at a rate of 6% forever. It's required return (Rs) is 12%. What is the best estimate of the current stock price? (Please show work)

A) $41.58

B) $42.64

C) $43.71

D) $44.80

E) $45.92

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Financial Management: Smart investments last dividend was 175 its dividend growth
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