Problem:
Whited Inc.'s stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 4.75% per year. The required rate of return on the stock, rs, is 11.50%.
Required:
Question: What is the stock's expected price 5 years from now?
Choose one answer.
A. $44.46
B. $41.20
C. $42.26
D. $40.17
Note: Provide support for your underlying principle.