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) $39.83
(D) $40.85
(E) $41.69

stock's expected price is $44.45

Explanation:

given data

currently sells = $35.25 per share

constant rate r = 4.75% per year = 0.0475

required rate of return = 11.50% = 0.1150

time t = 5 year

solution

we get here future value that is express as

future value = currently sells ×   ..................1

put her value we get

future value = $35.25 ×  

future value = $44.45

so stock's expected price is $44.45

im confused need to go into details plz thx

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.