ABC Online Merchant has a current stock price of $42.50. The company paid $1.34 in dividends this year, and the dividends are expected to grow at 3% per year. If an investor has a required rate of return of 5%, what is ABC worth to that investor?

• A : $69.01.

• B : $34.33.

• C :$70.35.

• D : $46.01.