A stock is expected to pay its first $2.2 dividend in 5 years from now (t=5). The dividend is expected to be paid annually forever and grow by 3% pa. The discount rate is 7% pa. Estimate what the stock price will be in 5.25 years from now. The stock price at time 5.25 is expected to be: Question 15 Select one: a. $55 b. $55.4079 c. $55.9382 d. $57.6164 e. $64.233A stock is expected to pay its first $2.2 dividend in 5 years from now (t=5). The dividend is expected to be paid annually forever and grow by 3% pa. The discount rate is 7% pa. Estimate what the stock price will be in 5.25 years from now. The stock price at time 5.25 is expected to be:

Question 15Select one:

a.

$55

b.

$55.4079

c.

$55.9382

d.

$57.6164

e.

$64.233