XYZ Corporation's Next Dividend Is Expected to Be $3 Per

Multiple Choice

XYZ Corporation's next dividend is expected to be $3 per share. Dividend growth rate has been at 2% and expected to be so into the future. If investor's return is 10%, calculate the stock price in year 4.

A) $39.4
B) $40.0
C) $40.6
D) $41.2
E) $41.8