You Are Considering Buying a Share of Stock in XYZ

Multiple Choice

You are considering buying a share of stock in XYZ Corporation.At the end of years 1,2,and 3 the stock will pay you a dividend of $15.In addition,at the end of the third year you expect to sell the share of stock for $100.If the interest rate is 3%,how much is the share of XYZ stock worth to you today?

A) $123.14
B) $133.94
C) $137.96
D) $145.00