单选题 An analyst gathered the following information about a common stock:
Annual dividend per share
$2.10
Risk-free rate of return
7%
Risk premium for the stock
45
If the stock's annual dividend is expected to remain at $2.10, the value of the stock is closest to :
A. $19.09. B. $20.00. C. $32.40.

【正确答案】 A
【答案解析】If the dividend is expected to remain constant, the value of the stock is determined by dividing the amount of the dividend by the required rate of return for the stock; $2.10/0.11=$19.09.