ABC Corporation is traded at $40 per share. A preferred share of ABC Corporation will pay a dividend of $8 in the upcoming year and every year thereafter; that is, dividends are not expected to grow. You require a return of 7% on this stock. Analysts expect the price of ABC Corporation shares to be $50 a year from now. Using the one-period intrinsic value model, a preferred share of ABC Corporation is worth ________.

$40.00

$54.21

$58

$114.29