Kelly Enterprises' Stock Currently Sells for $35

Multiple Choice

Kelly Enterprises' stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 4.75% per year. The required rate of return on the stock, rs, is 11.50%. What is the stock's expected price 5 years from now?

A) $40.17
B) $41.20
C) $42.26
D) $43.34
E) $44.46