stock is expected to pay its first $3.6 dividend in 4 years from now (t=4). The dividend is expected to be paid annually forever and grow by -3% pa (note the negative sign). The discount rate is 5% pa. Estimate what the stock price will be in 3.75 years from now. The stock price at time 3.75 is expected to be:

Question 8Select one:

a.

$54.0347

b.

$46.6772

c.

$45

d.

$42.6641

e.

$40.1427