A share of stock has the following characteristics. What is the price of the stock?

Current Dividend (D0) = $2.00 per share

Expected dividend growth (g) = 3.0% per year

Required Rate of Return (rs) = 8.0%

Answers:

A) $21.86

B)$ 34.97

C) $41.20

Given the information above, what would be the expected share price in year 5 (P5)?

A) $23.39

B) $24.13

C) $47.76