You Have Been Researching a Company and Have Estimated That

Multiple Choice

You have been researching a company and have estimated that the firm's stock will sell for $44 a share one year from now. You also estimate the stock will have a dividend yield of 2.18 percent. How much are you willing to pay per share today to purchase this stock if you desire a total return of 15 percent on your investment?

A) $37.55
B) $38.00
C) $38.24
D) $39.00
E) $40.20