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Connolly Co

Question 67

Multiple Choice

Connolly Co.'s expected year-end dividend is D1 = $1.60, its required return is rs = 11.00%, its dividend yield is 6.00%, and its growth rate is expected to be constant in the future. What is Connolly's expected stock price in 7 years, i.e., what is ? Connolly Co.'s expected year-end dividend is D<sub>1</sub> = $1.60, its required return is r<sub>s</sub> = 11.00%, its dividend yield is 6.00%, and its growth rate is expected to be constant in the future. What is Connolly's expected stock price in 7 years, i.e., what is ? A) $37.52 B) $39.40 C) $41.37 D) $43.44 E) $45.61


A) $37.52
B) $39.40
C) $41.37
D) $43.44
E) $45.61

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