A stock will pay its first dividend ever in 5 years. The dividend is expected to be $0.75 a share at that time and will grow at a 4 percent rate indefinitely. If the stock's beta is 1.2, the market price of risk is 7 percent and the risk-free rate is 2 percent, ________ is the most you should pay for the stock in 4 years, and ________ you should be willing to pay today.

• AP₄= $14.40; P₀= $11.72
• BP₄= $11.72; P₀= $7.89
• C P₄= $6.46; P₀= $10.40
• DP₄= $10.40; P₀= $7.15