Connolly Co $\hat { \mathrm { P } } _ { 7 }$

Multiple Choice

Connolly Co.'s expected year-end dividend is D₁ = $1.60,its required return is r_s = 11.00%,its dividend yield is 6.00%,and its growth rate is expected to be constant in the future.What is Connolly's expected stock price in 7 years,i.e.,what is $\hat { \mathrm { P } } _ { 7 }$ ?

A) $37.52
B) $39.40
C) $41.37
D) $43.44
E) $45.61