Variable Growth a Fast Growing Firm Recently Paid a Dividend

Multiple Choice

Variable Growth A fast growing firm recently paid a dividend of $0.50 per share.The dividend is expected to increase at a 25 percent rate for the next 3 years.Afterwards,a more stable 12 percent growth rate can be assumed.If a 15 percent discount rate is appropriate for this stock,what is its value?

A) $5.00
B) $22.62
C) $25.75
D) $36.46