You Are Considering Buying a Share of Stock in Company

Multiple Choice

You are considering buying a share of stock in Company ABC.At the end of years 1,2,and 3 the stock will pay you a dividend of $10.In addition,at the end of the third year you expect to sell the share of stock for $200.If the interest rate is 5%,how much is the share of ABC stock worth to you today?

A) $200
B) $210
C) $220
D) $230