Use the Information for the Question(s) Below

Use the information for the question(s) below.
Luther Industries has $5 million in excess cash and 1 million shares outstanding. Luther is considering investing the cash in
one-year Treasury bonds that are currently paying 5% interest and then using the cash to pay a dividend next year.
Alternatively, Luther can pay the cash out as a dividend immediately and the shareholders can invest in the Treasury bonds
themselves. Assume that capital markets are perfect.
-If Luther decides to pay the dividend immediately, the dividend per share will be closest to?

A) $1.05
B) $5.00
C) $4.75
D) $5.25