Stock A has an earnings of $5 per share at year 1. The interest rate is 20%, and the return on equity is 25%. If there is no plow-back, how much is the amount of the earnings or profit kept in the firm for each share of the stock at year one ?

Select one:

a. $3.00

b. $2.00

c. $1.00

d. $0.00

e. none of the above