A stock currently sells for $28 a share. Its dividend is growing at a constant rate

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A stock currently sells for $28 a share. Its dividend is growing at a constant rate, and its dividend yield is 5 percent. The required rate of return on the company's stock is expected to remain constant at 13 percent. What is the expected stock price, seven years from now?

 

  a. $24.62   

  b. $29.99   

  c. $39.40   

  d. $41.83   

 

  e. $47.98    

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