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Stock Evaluation Athabasca River Cruise Inc. (ARCI) has expected earnings per share of $10 for the next year. It has been paying out 25% of

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Stock Evaluation Athabasca River Cruise Inc. (ARCI) has expected earnings per share of $10 for the next year. It has been paying out 25% of its earnings to shareholders as dividends and will continue to keep this practice. The market capitalization rate for ARCI is 10%, and the expected rate od return for future investment is 12% per year. Based on the constant growth rate discounted dividend model, answer the following question. If the inflation rate adds up by 1%, the market capitalization rate for ARCI increases to 11%, and everything else remains the same, then what is the estimated stock price? a. $100 b. $125 C. $150 d. $200 O a. Ob. Oc. Oa

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