Kellner Motor Co.'s stock has a required rate of return of 11.50%, and it sells for $49.00 per share. Kellner's dividend is expected to grow at a constant rate of 7.00%. What was the last dividend, D₀?

Select the correct answer.

a. $2.40

b. $2.06

c. $1.72

d. $1.04

e. $1.38