You are a stock analyst hired to follow Jones Keynesian Consulting (ticker: JK). The firm recently paid a dividend of $2 per share, and you expect JK to grow at 10% for the next 3 years, after which you assume it will grow at a constant rate of 5%. Your required rate of return is 12%. What do you believe the intrinsic value of the stock is today?
a) $5.78
b) $32.31
c) $34.21
d) $33.49
e) $32.85