By bee is expected to have a temporary supernormal growth period and then level off to a "normal," sustainable growth rate forever. The supernormal growth is expected to be 25 percent for 2 years, 20 percent for one year and then level off to a normal growth rate of 8 percent forever. The market requires a 14 percent return on the company and the company last paid a $2.00 dividend. What would the market be willing to pay for the stock today（）
A. $52.68.
B. $47.09.
C. $76.88.
参考答案：A
解析：
First, find the future dividends at the supernormal growth rate(s). Next, use the infinite period dividend discount model to find the expected price after the supernormal growth period ends.
Third, find the present value of the cash flow stream.
D1=2.00(1.25)=2.50(1.25)=D2=3.125(1.20)=D3=3.75
P2=3.75/(0.14-0.08)=62.50
N=1; I/Y=14; FV=2.50; CPT PV=2.19.
N=2; I/Y=14; FV=3.125; CPT PV=2.40.
N=2; I/Y=14; FV=62.50; CPT PV=48.09.
Now sum the PV's: 2.19+2.40+48.09=$52.68.