(Solved): Suppose a stock pays shareholders \( \$ 100 \) year in dividends. The stock is to be held for 15 ye ...

Suppose a stock pays shareholders \( \$ 100 \) year in dividends. The stock is to be held for 15 years. How much will an investor be willing to pay for the stock at \( 10 \% \) interest, if the investor is certain that the company will go bankrupt after 15 years (i.e., the stock will be worthless and no further dividends will be paid)? A. \( \$ 760 \) B. \( \$ 1,000 \) C. \( \$ 514 \) D. \( \$ 614 \) E. \( \$ 1,594 \)