You Have Decided That You Would Like to Own Some

You have decided that you would like to own some shares of Martin & Miller (M&M) but need an expected 15% rate of return to compensate for the perceived risk of such ownership. What is the
Maximum you are willing to spend today to buy one share of M&M stock if the company pays a
Constant $3 annual dividend per share?

A) $15.00
B) $16.25
C) $17.50
D) $18.75
E) $20.00