A new Fintech company plans to make its first dividend payment one year from now. The dividend is expected to be $4 and will grow at a rate of 8% per year forever. Since the company is new, you think a 18% rate of return would be appropriate. How much would you be willing to pay for one share of this company?

Select one:

a. $40.00

b. $15.00

c. $20.00

d. $35.00

e. $4.00