10) You are considering an investment in ACME corporations stock, which is expected to pay a dividend of $5.25 a share at the end of the year and has a beta of 1.25. The risk-free is 3.5%, the market premium is 6%. ACME currently sells for $66.00 a share and its dividend is expected to grow at some constant rate, g. Assuming the markets are in equilibrium, what does the market believe will be the stock price at the end of 7 years?

$81.42

$83.12

$82.76

$85.67

$83.85