Janice is evaluating a stock that currently pays a dividend of $0.25 per share. She expects this level of dividend to continue indefinitely, and she has determined that 5% is the appropriate required return for the stock. What is the most she should pay for the stock?

1. $2.50 per share
2. $5.00 per share
3. $1.25 per share
4. $7.50 per share