You expect that Red Dragon Corporation common stock in one year will be worth $41.77. In one year, Red Dragon Corporation will pay a $2.34 dividend per share on its common stock. What is the market value today of a share assuming your required return on equity investments is 17%?
A. $25.54
B. $29.49
C. $37.70
D. $41.77
E. $55.54
