A stock is expected to pay its first $46 dividend in 8 years from now. The dividend is expected to be paid annually forever and grow by 1% pa. The discount rate is 5% pa. Estimate the current stock price. The current stock price should be:

Select one:

a.

$1,150

b.

$863.28

c.

$817.28

d.

$778.37

e.

$741.3