Kay Jay, Inc. is expected to pay its first ever annual dividend one year from now, based on an expected earningsper share of $2.50 and a payout ratio of 40%. Future earnings per share are expected to grow indefinitely at 4% per year, and Kay Jay is expected to maintain the 40% payout ratio. If Kay Jay's cost of equity capital is 15%, at what price should Kay Jay's stock to sell for today?

A. $15.43

b.$9.09

c.$13.64

d.$6.67

e.$27.73