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#11513
Homework Help During Flight Delay - 5
Need to know which answer is correct and all calculations. Please show work so I will understand the approach.
Need by 1300 today, eastern daylight time, US.
Please provide all steps on a TI BA Plus, if possible.
Kirkland Motors expects to pay a $2 per share dividend on its common stock at the end of the year (i.e. D1 = $2). The stock currently sells for $20 a share. The required rate of return on the company's stock is 12 percent (i.e. ks = .12). The dividend is expected to grow at some constant rate over time. What is the expected stock price five years from now?
a. $21.65
b. $22.08
c. $25.64
d. $35.25
e. $36.78
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