What Is the Current Value of a Share of McDonalds

Multiple Choice

What is the current value of a share of McDonalds if its current dividend is $1.50 and dividends are expected to grow at an annual rate of 20 percent for the next 5 years? Assume the investor has a required rate of return of 15 percent and expects to sell the security in 5 years for $72.

A) $44.31
B) $35.78
C) $39.63
D) $72.00