A stock will pay a $2 dividend next year, a $2.25 the year after, and then a $2.50 dividend the following year. An investor believes that she can then sell the stock for $50 at the end of a 3-year holding period. The risk-free rate of interest is 7 percent, the market return is 13 percent, and the stock's beta is 1. What is the value of the stock?

a. $35.76

b. $37.44

c. $39.92

d. $47.99