Based on the following information concerning Ford preferred stock,
Preferred dividend per share: $6
Beta: 0.85
Risk free rate: 5%
Market risk premium: 6%
Calculate the expected price in 4 years, assuming that you expect the risk free rate will increase to 7% and the market risk premium will increase to 10%.
a. $42.11
b. $46.51
c. $44.98
d. $38.71