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The last dividend paid by Coppard Inc. was $1.25. The dividend growth rate is expected to...

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Finance

The last dividend paid by Coppard Inc. was $1.25. The dividendgrowth rate is expected to be constant at 12.5% for 3 years, afterwhich dividends are expected to grow at a rate of 6% forever. Ifthe firm's required return (rs) is 11%, what is itscurrent stock price?

Select the correct answer.

a. $40.97
b. $39.35
c. $38.54
d. $40.16
e. $37.73

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