Kelly Enterprises' stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 1.00% per year. The required rate of return on the stock, rs, is 11.50%. What is the stock's expected price 5 years from now? Select the correct answer.

a. $37.05

b. $37.87

c. $36.23

d. $36.64

e. $37.46