QUESTION 2

1. If 1) the expected return for Belmont Bagels stock is 9.45 percent; 2) the dividend is expected to be $5.85 in one year, $4.33 in two years, $0.00 in three years, $0.00 in four years, and $2.47 in five years; and 3) after the dividend is paid in five years, the dividend is expected to begin growing by 4.46 percent a year forever, then what is the current price of one share of the stock?

   QUESTION 2

   If 1) the expected return for Belmont Bagels stock is 9.45 percent; 2) the dividend is expected to be $5.85 in one year, $4.33 in two years, $0.00 in three years, $0.00 in four years, and $2.47 in five years; and 3) after the dividend is paid in five years, the dividend is expected to begin growing by 4.46 percent a year forever, then what is the current price of one share of the stock?

   		An amount equal to or greater than $45.10 but less than $47.34
   		An amount less than $41.96 or a rate greater than $51.66
   		An amount equal to or greater than $47.34 but less than $51.66
   		An amount equal to or greater than $41.96 but less than $44.24
   		An amount equal to or greater than $44.24 but less than $45.10