Suppose You Want to Implement a Market for a Share

Multiple Choice

Suppose you want to implement a market for a share with a flat fundamental value (P) . Denote by E the per period expected dividend for this share and by R the market interest rate. Which of the following formula represents the correct expression for the flat fundamental value in this case?

A) P = R/E.
B) P = E/R.
C) P = E/{1+R}.
D) P = E*R.