An analyst has forecast that FT will pay its first dividend two years from now in the amount of $1.25. For the following year she forecasts a dividend of $2.00 and expects dividends to increase at an average rate of 7% for the foreseeable future after that. If the risk-free rate is 4.5%, the expected market risk premium is 7.5%, and FT's beta is 0.9, she would estimate the current value of FT's shares as being closest to: A. $37. B. $39. C. $47