Deluxe Company Expects to Pay a Dividend of $2 Per

Multiple Choice

Deluxe Company expects to pay a dividend of $2 per share at the end of year-1, $3 per share at the end of year-2 and then be sold for $32 per share. If the required rate on the stock is 15%, what is the current value of the stock?

A) $28.20
B) $32.17
C) $32.00
D) None of the given answers