Morgan Insurance Ltd. issued a fixed-rate perpetual preferred stock three years ago and placed it privately with institutional investors.

The stock was issued at $25.00 per share with a $1.75 dividend.

If the company were to issue preferred stock today, the yield would be 6.5 percent. The stock’s current value is:

a. $25.00.

c. $37.31.

b. $26.92.

d. $40.18.