You are a senior analyst of a mutual fund, and you are assigned to write a report on a stock. The current stock price is $70, and the stock paid a dividend of $4 per share this morning. If the investors' required rate of return is 14% pa, what is the expected price of this stock at the end of Year 2?
a. $79.86
b. $81.40
c. $83.14
d. $77.60
e. $75.49