Starky’s is a designer of men’s underwear. The following data relates to shares in Starky’s:

Last dividend (recently paid): $10 Projected growth rate of dividends (paid annually): 10%

Assuming that the required equity rate of return in Starky’s is 20%, estimate the market value of Starky’s shares.

a. $100

b. $90

c. $110

d. $120