Cypress Ltd. has 5 million common shares outstanding. Last year, the shares paid a

dividend of $0.22 per share. Analysts have stated that they expect these dividends

to grow at an average annual rate of 3% for the foreseeable future. The beta on

Cypress common shares is 1.50, the risk-free rate of return is 3% and the expected

return on the market is 10%. Given this information, what is the current price of

Cypress common shares?

a) $1.51

b) $1.68

c) $2.10

d) $2.16