A firm is expecting a: $11 dividend to be paid to shareholders in one year (t=1); $14 dividend the year after (t=2); $20 dividend the year after (t=3); and from then on the 3% pa inflation rate which is expected to be the growth rate of the dividend which will be paid annually forever; 8% pa required return on equity; All returns and cash flows are given as nominal figures

A firm is expecting a:

$11 dividend to be paid to shareholders in one year (t=1);

$14 dividend the year after (t=2);

$20 dividend the year after (t=3); and from then on the

3% pa inflation rate which is expected to be the growth rate of the dividend which will be paid annually forever;

8% pa required return on equity; All returns and cash flows are given as nominal figures.

Estimate the current stock price. The stock's current price is estimated to be:

Select one:

a. $339.720825

b. $365.123457

c. $392.558299

d. $422.187929

e. $425