Question: Keong is considering an investment in Leongs Bar & Grille Corporation. Keong is planning to buy the stock today, hold it for 2 years, and

Keong is considering an investment in Leong’s Bar & Grille Corporation. Keong is planning to buy the stock today, hold it for 2 years, and then expects to sell the stock for $30 at the end of 2 years. Keong expects the first dividend to be $1.00 and the second dividend to be $1.30. If Keong requires a 15% rate of return, what is the value of Leong’s Bar & Grille common stock to Keong today?

A. $21.58

B. $23.55

C. $24.54

D. $23.67

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