Based on its projected required annual rate return of $11\mathrm{.}50\%,$ ABC Inc. $($financed only by equity$)$ expects to pay a $$4\mathrm{.}70$ per share annual dividend in the upcoming year. If their stock is currently priced at $$27\mathrm{.}70,$ what would you expect the price to be one year from today?

Question $7$ Answer

a$.$

$$30\mathrm{.}89$

b$.$

$$26\mathrm{.}19$

c$.$

$$32\mathrm{.}43$

d$.$

$$21\mathrm{.}90$

e$.$

$$23\mathrm{.}00$