Question

Kelly Enterprises' stock currently sells for $35.25 per share. The dividend is projected to increase at...

Kelly Enterprises' stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 9.50% 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?

Select the correct answer.

a. $39.56
b. $38.92
c. $39.88
d. $38.60
e. $39.24
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