Assume That the Dividend ($3

Multiple Choice

Assume that the dividend ($3.25) on Central Power Company's common stock issue is paid annually at the end of the year. This dividend is not expected to increase for the foreseeable future. Determine the value of this stock to an investor who requires a 12 percent rate of return.

A) $3.25
B) $39
C) $12
D) $27.08