Confusion Corp Is Expected to Pay a Dividend of $2

Multiple Choice

Confusion Corp is expected to pay a dividend of $2 in the upcoming year. The risk-free rate of return is 4%, and the expected return on the market portfolio is 14%. Analysts expect the price of Confusion Corp shares to be $22 a year from now. The beta of Confusion Corp's stock is 1.25. What is the intrinsic value of Confusion's stock today?

A) $20.60
B) $20.00
C) $12.12
D) $22.00