Big Falls Tours Just Paid a Dividend of $1

Multiple Choice

Big Falls Tours just paid a dividend of $1.55 per share.The dividends are expected to grow at 30 percent for the next 8 years and then level off to a 6 percent growth rate indefinitely.What is the price of this stock today given a required return of 15 percent?

A) $67.54
B) $69.90
C) $70.47
D) $71.07
E) $78.19