The current price of a stock is $105.32. If dividends are expected to be $0.80 per share for the next five years, and the required return is 5%, then what should the price of the stock be in 5 years when you plan to sell it?

The price 5 years from now will be $ nothing. (Round your response to the nearest dollar.)

If the dividend and required return remain the same, and the stock price is expected to increase by $1 five years from now, does the current stock price also increase by $1?

A. No, the current stock price will not increase by $1 because the future stock price is discounted by the required return.

B. Yes, the current stock price will increase by $1 because the current stock price should not be discounted by the required return.

C. The answer is uncertain as stock prices can be very unpredictable.