$3550 Per Share Is the Current Price for Foster Farms

Multiple Choice

$35.50 per share is the current price for Foster Farms' stock. The dividend is projected to increase at a constant rate of 5.50% per year. The required rate of return on the stock, rs, is 9.00%. What is the stock's expected price 3 years from today?

A) $37.86
B) $38.83
C) $39.83
D) $40.85
E) $41.69