A firm is expected to have four years of growth with a retention ratio of 100 percent. Afterwards the firm's dividends are expected to grow 4 percent annually, and the dividend payout ratio will be set at 50 percent. If earnings per share (EPS)=$2.4 in year 5 and the required return on equity is 10 percent, what is the stock's value today()
A. $20.00.
B. $30.00.
C. $13.66.