Last year, XYZ Company paid a dividend of $1.85. It expects zero growth in the next year. In years 2 and 3, 3% growth is expected, and in year 4, 6% growth. In year 5 and thereafter, growth should be a constant 5% per year. What is the maximum price per share that an investor who requires a return of 13% should pay for XYZ common stock?

Select one:

a. $24.33

b. $26.76

c. $20.32

d. $21.10

e. $22.51