A share of stock will pay a dividend of $30 in one year, and will be sold for an expected price of $700 at that time. If the current one- year interest rate is 4.5%, the current price of the stock is approximately equal to:
A) $501.56.
B) $464.56.
C) $545.56.
D) $698.56.
E) $483.56.

Question

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The Answer of A share of stock will pay a dividend of $30 in one year, and will be sold for an expected price of $700 at that time. If the current one- year interest rate is 4.5%, the current price of the stock is approximately equal to:
A) $501.56.
B) $464.56.
C) $545.56.
D) $698.56.
E) $483.56.

A Share of Stock Will Pay a Dividend of $30