Lorelinc has grown at a relatively constant annual rate of 4.5% and it recently paid a dividend of $2.50. Lorelinc is expected to continue paying dividends, which are expected to grow at the same historical rate. If the required return on the stock is 12%, what is the value of the stock today?

a.

$23.73

b.

$33.33

c.

$34.83

d.

$37.33