Company Z-primes earnings and dividends per share are expected to grow by 5% a year. Its growth will stop after year 4. In year 5 and afterward, it will pay out all earnings as dividends. Assume next years dividend is $10, the market capitalization rate is 8% and next years EPS is $15. What is Z-primes stock price?

Select one:

a. $195.06

b. $177.34

c. $217.05

d. $203.73