You Are Considering Buying Stock and Require a Rate of Return

Multiple Choice

You are considering buying stock and require a rate of return of 12%.   If you expect the dividend to be $1.25 for years 1-3, $1.50 in year 4 and $1.75 in year 5 with an expected selling price at that time of $67, then what is the most you should pay today? ​

A) ​$52.69
B) ​$42.96
C) ​$40.85
D) ​$41.00