Fanshaw Corporation Is Expected to Pay an Annual Dividend of $0.20

Multiple Choice

Fanshaw Corporation is expected to pay an annual dividend of $0.20 per share in the coming year,and to trade for $15.15 at the end of the year.If investments with the same risk as Fanshaw's stock have an expected return of 10.75%,what is the most you would pay today for Fanshaw's stock?

A) $15.15
B) $15.35
C) $13.50
D) $14.95
E) $13.86