What is the expected price of the stock 7 years from


Bettis Corp.'s stock price is $20 per share, and its expected year-end dividend is $2 a share (D1 = $2.00). The stock's required return is 15%, and the dividend is expected to grow at a constant rate forever. What is the expected price of the stock 7 years from now?

a. $27.18

b. $28.14

c. $29.95

d. $30.45

e. $31.81

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Financial Management: What is the expected price of the stock 7 years from
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