You are thinking about buying a share of glencoe industries


You are thinking about buying a share of Glencoe Industries, which has a current market price of $30.00 per share. Glencoe expects to pay a dividend of $1.125 per share next year. Your required rate of return on these types of investments s 6% and is expected to remain at that rate indefinitely. If dividends are expected to grow at a constant rate for the foreseeable future, what is the expected market price per share in 4 years? (Note: use four decimal places for all calculations)

A. $57.9333        

B. $33.5307        

C. $32.7925        

D. $31.6327

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Financial Management: You are thinking about buying a share of glencoe industries
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