What is the PVGO for a firm that will earn $2.00/share next year,will pay out 30% of

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Question:

What is the PVGO for a firm that will earn $2.00/share next year,will pay out 30% of its earnings, has 9% cost of equity, and a growth rate of 3%? Use the sustainable growth rate equation to explain why the answer is the way it is.

a. $3.33; it adds a material amount, but not most, of the value of the stock
b. $0.47; it adds virtually no value to the stock
c. $4.42; it adds exactly half the value of the stock
d. $5.29; it adds most of the value of the stock