ABC Company has just paid a dividend of $2.96 per share, and its dividend is expected to grow at a constant rate of 6.2% per year in the future. The company's beta is 1.56, the market risk premium is 6.50%, and the risk-free rate is 4.00%. What is the company's current stock price, P0? (Hint: Compute ks first using the CAPM and then Po.)

Group of answer choices

a. $39.59

b. $40.11

c. $38.66

d. $39.82

e. $38.25