Midwest Corporation is expected to pay an annual dividend of $0.45 per share in the coming year, and to trade for $31.10 at the end of the year. If investments with the same risk as Midwest's stock have an expected return of 8.5%, what is the most you would pay today for Midwest's stock?

Question 1 options:

A)

$31.55

B)

$30.65

C)

$28.25

D)

$31.10

E)

$29.08