A financial analyst expects KacieCo. to pay a dividend of $3 per share one year from today, a dividend of $3.50 per share in years two, and estimates the value of the stock at the end of year two to be $28. If your required return on KacieCo stock is 15 %, what is the most you would be willing to pay for the stock today if you plan to sell the stock in two years?

a.

$26.09

b.

$26.43

c.

$28.90

d.

$34.00