You applied for an Equity Analyst position with Goldman Sachs after graduating from Harvard. As part of the evaluation process, you have to take a test on stock valuation covering the following questions:

Vineyard Vines Company just paid a dividend to dividend of $4.5 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 10% over the next year. However, after next year Vineyard Vine's dividend is expected to grow at a constant rate of 3.5% per year. The risk-free rate is 4%, the market risk premium is 5.0%, and Vineyard's beta is 1.15. What is the price of the stock one year from now, P1? a) 53.26 Ob) 62.54 c) 79.50 d) 81.97 e) 45.72