K's Fashions Is Growing Quickly

Multiple Choice

K's Fashions is growing quickly. Dividends are expected to increase by 8 percent annually for the next three years, with the growth rate falling off to a constant 3 percent thereafter. The required return is 14 percent and the company just paid its annual dividend of $3.64 per share. What is the current share price?

A) $48.96
B) $51.11
C) $38.79
D) $41.87
E) $55.70