1. Digital Systems, Inc. just paid a dividend of D₀ = $3.25 per share on its stock. The dividends are expected to grow at a constant rate of g = 3 percent per year indefinitely. If investors require a return of K_C/S = 13 percent on the companys stock, what will be the stock price in 5 years price, P₅ = ?

   		$34.48
   		$37.68
   		$38.81
   		$53.91