John is a retired individual who needs income to pay his bills. He decides to buy shares in the Sweet Candy Company. They do not have any ambitions to expand, so they pay all their income out as dividends. John expected the company to pay $3.25 a share in dividends every three months. John thinks the appropriate discount rate is 12.5%. What is the most John should pay for the stock? John is a retired individual who needs income to pay his bills. He decides to buy shares in the Sweet Candy Company. They do not have any ambitions to expand, so they pay all their income out as dividends. John expected the company to pay $3.25 a share in dividends every three months. John thinks the appropriate discount rate is 12.5%. What is the most John should pay for the stock? 

$32.50 

$26.00 

$130.00 

$104.00