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, rs, 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


Answer: E

Business

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