The Jackson-Timberlake Wardrobe Company just paid a dividend of $1.26 per share on its stock. The dividends are expected to grow at a constant rate of 8 percent per year indefinitely.

If investors require a return of 13 percent on the company's stock, what is the current price?

a. $27.22

b. $27.76

c. $26.67

d. $25.20

e. $6.00

What will the price be in 15 years?

a. $86.33

b. $88.06

c. $84.61

d. $79.94

e. $19.03