The D. Wagner Company's last dividend was $1.00. The dividend growth rate is expected to be constant at 20% for 2 years, after which dividends are expected to grow at a rate of 6% forever, and the current stock price is $35. What is Wagner's required return, rs? (Hint: This problem is hard, and it is really feasible only for with students with computer access.)
a. 9.56%
b. 10.48%
c. 10.23%
d. 9.87%
e. 10.04%