Three Corners Markets Paid an Annual Dividend of $1

Multiple Choice

Three Corners Markets paid an annual dividend of $1.42 a share last month. Today, the company announced that future dividends will be increasing by 1.3 percent annually. If you require a return of 14.6 percent, how much are you willing to pay to purchase one share of this stock today?

A) $11.23
B) $10.82
C) $10.68
D) $9.68
E) $11.57