Shane Purchased a Stock This Morning at a Cost of $13

Multiple Choice

Shane purchased a stock this morning at a cost of $13 a share. He expects to receive an annual dividend of $.27 a share next year. What will the price of the stock have to be one year from today if Shane is to earn an 8 percent rate of return on this investment?

A) $12.38
B) $12.60
C) $12.88
D) $13.77
E) $14.28