单选题 Billie Blake is interested in a stock that has an expected dividend one year from today of $1.50, i. e. , D ₁ =$1.50, D ₂ =$1.75 and D ₃ =$2.05. She expects to sell the stock for $47.50 at the end of year 3. What is Billie willing to pay one year from today if investors require a 12 percent return on the stock.

A、 $38.01.
B、 $41.06.
C、 $52.30.

【正确答案】 B

【答案解析】Find the present values of the cash flows and add them together.
N=1; I/Y=12; FV=1.75; compute PV=1.56.
N=2; I/Y=12; FV=2.05; compute PV=1.63.
N=2; I/Y=12; FV=47.50; compute PV=37.87.
Stock Price=$1.56+$1.63+$37.87=$41.06.