Consider a company that earned \($4.00\) per share last year and paid a dividend of \($1.00.\) The firm has maintained a consistent payout ratio over the years and analysts expect this to continue. The firm is expected to earn \($4.40\) per share next year, and the stock is expected to sell for \($30.00.\) The required rate of return is 12%. What is the best estimate of the stock’s current value?

a. \($44.00\)

b. $22.67

c. $27.77