Analysts predict that ABC's earnings and dividends will see growth of 4.90% annually for the foreseeable future. Shareholders of ABC require a 12.80% annual return and the company just paid a $5.94 annual dividend. Based on this, what will be the price of ABC's stock in 6 years?

Question 10Answer

a.

$64.86

b.

$105.10

c.

$100.19

d.

$95.51

e.

$110.25