CK Company Stockholders Expect to Receive a Year-End Dividend of $5

Multiple Choice

CK Company stockholders expect to receive a year-end dividend of $5 per share and then immediately sell their shares for $115 dollars per share. If the required rate of return for the stock is 20 percent, what is the current value of the stock?

A) $132
B) $122
C) $100
D) $110