Ackert Company's last dividend was $4.00. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which dividends are expected to grow at a rate of 8.0% forever. The firm's required return (rs) is 12.0%. What is the best estimate of the current stock price? Do not round intermediate calculations.
A. $87.00
B. $95.61
C. $89.87
D. $80.31
E. $104.21
Answer: B
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