The Ramirez Company's last dividend was $1.75. Its dividend growth rate is expected to be constant at 24% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (rs) is 12%. What is the best estimate of the current stock price? Do not round intermediate calculations.
A. $36.94
B. $52.47
C. $41.98
D. $31.90
E. $45.34
Answer: C
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