Nachman industries just paid a dividend of d0 4.75., Ask an Expert

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Nachman Industries just paid a dividend of D0 = $4.75. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is the best estimate of the stock's current market value?

A. $161.46

B. $132.39

C. $196.98

D. $175.99

E. $150.15

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