The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.40 per share on its stock. The dividends are expected to grow at a constant rate of 7 percent per year indefinitely.

Required:

If investors require a 15 percent return on The Jackson-Timberlake Wardrobe Co. stock, what is the current price?

A. $18.35

B.$18.72

C.$19.10

D.$6.36

E.$17.50

What will the price be in 9 years?

A. $35.11

B. $11.70

C.$32.17

D.$33.74

E.$34.43

DO NOT COPY FROM CHEGG I NEED A FULL EXPLANATION