Joe Smith investor expects ABC Co. to pay dividends of $4.00, $4.50 and $5.00 per share over the next three years.Joe Smith also expected that the stock will have a price at the end of the 3-year holding period of $250/ share, representing a 2.0%.If Joe Smith requires a 20% return on the investment, how much would he be willing to pay for the stock?

Select one:

a.$183.50

b.$140.00

c.$172.50

d.$154.03