Last year, XYZ Company paid a dividend of $3.40. It expects zero growth in the next year. In years 2 and 3, 5% growth is expected, and in year 4, 15% growth. In year 5 and thereafter, growth should be a constant 8% 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. $73.63

b. $71.74

c. $68.15

d. $69.91