LEO AG made two announcements concerning its common stock today. First, the company announced that its next annual dividend has been set at $1.75 a share. Secondly, the company announced that all future dividends will increase by 5.5% annually. What is the maximum amount you should pay to purchase a share of Angelina's stock if your goal is to earn a 7,5% rate of return?

a. $88.50

b. $ 87.50

c. $85.00

d. $90.00

e. $85.00