The Fix Anything Store Pays a Constant Dividend

Multiple Choice

The Fix Anything Store pays a constant dividend.Last year, the dividend yield was 4.5 percent when the stock was selling for $36.25 a share.What must the stock price be today if the market currently requires a 4 percent dividend yield on this stock?

A) $40.78
B) $28.48
C) $25.89
D) $45.09
E) $38.37