You are considering the purchase of a common stock that paid a dividend of $2.00 yesterday. You expect this stock to have a growth rate of 15% for the next 3 years. The growth rate after year 3 is expected to be 10% per year forever. If you require a 14% rate of return, how much should you be willing to pay for this stock? Assume that dividends are paid annually at the end of each year.
A) $89.75
B) $56.46
C) $83.65
D) $62.57