Lowgro Inc. stock paid a dividend of $1.20 over the past year. The dividend is not expected to grow over the next five years. After the five-year no-growth period, the dividends are expected to grow at a 6% rate, indefinitely. If investors require a 10% return on Logrow stock, what is its current price?
a. $31.80
b. $24.29
c. $42.15
d. $19.75
