Overland has just paid a dividend of $2.25 on its common stock. The dividends are paid annually and are expected to grow at a rate of 5% per year in the foreseeable future. The risk of this company suggests that future cash flows should be discounted at a rate of 11% per year. Which of the following amounts is closest to what should be paid for Overland common stock? Answer is $39.375. Please explain which formula and why the formula is used.