Hofmann Enterprises invests a lot of money in R&D, and as a result it retains and reinvests all of its earnings instead of paying dividends. A pension fund manager is interested in purchasing Hofmanns stock and has estimated its free cash flows for the next 3 years as follows: $2 million, $6 million, and $9 million. After the 3rd year, FCF is projected to grow at a constant 5 percent. Hofmanns WACC is 7 percent, its debt and preferred stock total $100 million, and it has 8 million shares of common stock outstanding. What is the value of Hofmanns stock price?

a. $37.52

b. $34.37

c. $48.37

d. $46.87

e. $50.02