Assuming that the investor plans to hold the stock for one year and estimates that the price of the stock will be $14 at the point of sale, with a possibility that the stock would pay a $2 per share dividend in one years time. The investor has determined that to invest, there has to be a return of 20% on this investment. Calculate the present value of the stock.

a.

10.33

b.

13.33

c.

5.33