Question $8(10$ points$)$

Valuing a share of a stock $(P)$ that pays a dividend and you expect to hold it for one period:

Assume you expect the dividend to be $$1$ in one year $($not right away, but wait one year out$).$

You expect to sell$/$receive $$18$ for one share of this stock in one year.

You have a required return of $10\%($for investments of similar risk$).$

How much should you pay for this one share?

$$18\mathrm{.}18$

$$25\mathrm{.}71$

$$17\mathrm{.}27$

None of the above