Kay Jay, Inc. is expected to pay its first ever annual dividend one year from now, based on an expected earrings per share of $4.20 and a paycut ratio of 40%. Future eamings per share are expected to grow indefinitely at 6% per year, and Kay Jay is expocted to maintain the 40% payout ratio. If Kay Jay's cost of equily capital is 15.50%, at what price should Kay Jay's stock to sell for today? Choose the closest answer. a. 17.68 b. $12.48 c. $8.00 d. 18.75 e. 59.09 t. $12.00 g. $9.45