Over the Past 10 Years the Dividends of Allegro Have

Multiple Choice

Over the past 10 years the dividends of Allegro have grown from $0.45 to $1.82 per share. Determine the value of Allegro's common stock to an investor who requires a 20% rate of return, assuming that dividends continue growing at the same rate as they grew over the past 10 years.

A) $36.40
B) $41.86
C) $43.68
D) $20.93