Bavarian Sausage just paid a $1.57 dividend and investors expect that dividend to grow by 5% each year forever. If the required return on the stock investment is 14%, what should be the price of the stock in 5 years?

a. $18.32

b. $23.33

c. $17.44

d. $22.26

Bavarian Sausage is expected to pay a $1.57 dividend next year and investors expect that dividend to grow by 5% each year forever. If the required return on the stock investment is 14%, what should be the price of the stock in 5 years?

a. $18.32

b. $22.28

c. $21.22

d. $17.44

Whats the difference between just paid or expected to pay?