Question $22$

Company Z$-$prime's earnings and dividends per share are expected to grow

by $4\%$ a year. Its growth will stop after year $4.$ In year $5$ and afterward, it will

pay out all earnings as dividends. Assume next year's dividend is $$8,$ the

market capitalization rate is $10\%$ and next year's EPS is $$15.$ What is Z$-$

prime's stock price?

$$142\mathrm{.}04$

$$168\mathrm{.}10$

$$137\mathrm{.}75$

$$255\mathrm{.}02$