Midwest Corporation Is Expected to Pay an Annual Dividend of $0.45

Multiple Choice

Midwest Corporation is expected to pay an annual dividend of $0.45 per share in the coming year,and to trade for $31.10 at the end of the year.If investments with the same risk as Midwest's stock have an expected return of 8.5%,what is the most you would pay today for Midwest's stock?

A) $31.10
B) $29.08
C) $31.55
D) $28.25
E) $30.65