Orwell Building Supplies' Last Dividend Was $1

Multiple Choice

Orwell Building Supplies' last dividend was $1.75.Its 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.Its required return (r_s) is 12%.What is the best estimate of the current stock price?

A) $41.58
B) $42.64
C) $43.71
D) $44.80
E) $45.92