What Should Be the Stock Value One Year from Today

question 48

Multiple Choice

What should be the stock value one year from today for a stock that currently sells for $35,has a required return of 15%,an expected dividend of $2.80,and a constant dividend growth rate of 7%?

• A) $37.45
• B) $37.80
• C) $40.25
• D) $43.05