Graham Enterprises anticipates that its dividend at the end of the year will be $2.00 a share (i.e., D ₁ = $2.00). The dividend is expected to grow at a constant rate of 7 percent a year. The risk-free rate is 6 percent, the market risk premium is 5 percent, and the company's beta equals 1.2. What is the expected price of the stock five years from now?

a. $52.43

b. $56.10

c. $63.49

d. $70.49

e. $72.54