ABC Corp.  earned $2.50 per share this year, and it has a payout ratio of 35%.  The beta for this stock is 1.0.  Earnings and dividends have been growing at a constant rate of 11% per year, although analysts now estimate that the growth rate will be 9% a year for the indefinite future.  The required rate of return for the market as a whole is 14%.  What is the estimated price of this stock?

Select one:

a. $83.33

b. $54.50

c. $19.00

d. $17.50