Dyer Furniture is expected to pay a dividend of D₁ = $1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 0.60, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is Dyer's current stock price?

Select the correct answer.

a. $96.15

b. $97.45

c. $98.10

d. $96.80

e. $98.75