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Company B is expected to earn $3.53 per share next year and have a payout ratio of 45%. If Company B has a return on

Company B is expected to earn $3.53 per share next year and have a payout ratio of 45%. If Company B has a return on equity of 10.5% p.a., yet the market's required rate of return is 9.5% p.a., the present value of growth opportunities (PVGO) reflected in Company B's stock price should be closest to:

A. $5.49

B. $6.71

C. $20.44

D. $40.66

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