Ackert Company's Last Dividend Was $4

Multiple Choice

Ackert Company's last dividend was $4.00.The dividend growth rate is expected to be constant at 1.5% for 2 years,after which dividends are expected to grow at a rate of 8.0% forever.The firm's required return (r_s) is 12.0%.What is the best estimate of the current stock price? Do not round intermediate calculations.

A) $87.00
B) $95.61
C) $89.87
D) $80.31
E) $104.21