Ace Frisbee Corporation is expected to pay a dividend in Year 1 of $3.00, a dividend in Year 2 of $4.00, and a dividend in Year 3 of $5.00. After Year 3, dividends are expected to grow at the rate of 2.5% per year. Ace Frisbee Corps Beta is 1.2. The consensus estimate of the coming year's market returns is 4%, and T-bills currently offer a 1.5% return. How much should the shares be worth today?

a.

$235.47

b.

$178.31

c.

$187.93

d.

$145.82