Titanium World Inc

Multiple Choice

Titanium World Inc. ,which is a firm that makes specialized golf clubs,plans to pay a dividend of $2 per share at the end of this year;the following year's dividend is expected to be $3 per share;the dividend the year after is expected to be $5;and,after that point,dividends should increase at a constant rate of 10 percent each year forever.The appropriate discount rate for Titanium World is 15 percent.What is the per share value of Titanium World's stock?

A) $70.19
B) $110.00
C) $62.89
D) $79.62
E) $80.72