Company X just paid $2.00 dividend. You believe that the dividend will grow by 5% per year forever.

If you require 10% return on this investment, what is the stock price?

		20
		40
		21
		42

2- How would your answer if you hold the stock for 2 years and then sell it for $30.

		28.52
		31.18
		31.38
		28.34