Danforth Corp Has a Current Stock Price of $117

Multiple Choice

Danforth Corp has a current stock price of $117.15 and is expected to pay a dividend of $4.50 in one year.If Danforth's equity cost of capital is 10%,what price would Danforth's stock be expected to sell for immediately after it pays the dividend?

A) $124.37
B) $128.87
C) $121.65
D) $112.65
E) $113.06