Kelly Enterprises' Stock Currently Sells for $35

question 54

Multiple Choice

Kelly Enterprises' 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, r_s, is 11.50%.What is the stock's expected price 5 years from now?

• A) $40.17
• B) $41.20
• C) $42.26
• D) $43.34
• E) $44.46

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