A stock is expected to pay its first $2.2 dividend in 5 years from now (t=5). The dividend is expected to be paid annually forever and grow by 0% pa. The discount rate is 7% pa. Estimate what the stock price will be in 4.25 years from now. The stock price at time 4.25 is expected to be:

Select one:

a.

$29.8735

b.

$31.4286

c.

$31.9647

d.

$34.2022

e.

$41.8992

Clear my choice