Based on the following information concerning Ford preferred stock,

Preferred dividend per share: $6

Beta: 0.85

Risk free rate: 5%

Market risk premium: 6%

Calculate the expected price in 4 years, assuming that you expect the risk free rate will increase to 7% and the market risk premium will increase to 10%.

Select one:

a. $42.11

b. $46.51

c. $44.98

d. $38.71