Answer:
Therefore, the stock price would be $44.46 in 5 years
Explanation:
Use dividend discount model of evaluating stocks to find the price 5 years from now. The models follows the formula below;
P1 = P0(1+g)
where P1 is next year's price
P0 is current price
g is the dividend growth rate which is assumed to be equal to growth rate of stock price.
P0 = 35.25
g = 4.75% or 0.0475 as a decimal
P5 = 35.25(1.0475)^5
P5 = $44.46
Therefore, the stock price would be $44.46 in 5 years
