Company Strawberry Wine is a French vendor of wine and fresh fruits.

The company will pay out a dividend of 6.24 euros per share in 12 months’ time, which represents a 60% payout of the company’s available earnings for distribution. Suppose that investors in Strawberry Wine require a rate of return of 10%. If the market’s expectation is that the company will continue to retain 40% earnings at a re-investment rate of 10%, the firm is currently fairly valued ex-dividend at

a. 37.4

b. 62.4

c. 104.0

d. None of the above