The Felix Corp. will pay an annual dividend of $1.00 next year. The dividend will increase by 12 percent a year for the following two years before growing at 4 percent indefinitely thereafter. If the required rate of return is 10 percent, what is the stock’s current value?
Select one:
a. $13.38
b. $14.05
c. $19.11
d. $9.80
e. $10.38