Jefferson Mills Just Paid a Dividend of $1

Multiple Choice

Jefferson Mills just paid a dividend of $1.56 per share on its stock.The dividends are expected to grow at a constant rate of 8 percent per year,indefinitely.What will the price of this stock be in 7 years if investors require a 15 percent rate of return?

A) $28.18
B) $32.04
C) $37.46
D) $41.25
E) $43.33