Francis Firm is expected to pay a dividend of $1.25 at the end of the first year, and that dividend is expected to grow at a constant annual rate of 7% in future. The firm's beta is 1.15, market risk premium is 5.50%, and risk-free rate is 4%. What is its current stock price?

1)

$39.42

2)

$35.80

3)

$38.78

4)

$36.12

5)

$37.59