Peter is considering to add a preferred stock to his portfolio. The preferred stock pays a dividend of $6.50 per year. He expects that such dividends will last forever (as long as he is concerned). He has also done some research and figured out that the beta for this stock is 1.2. The risk-free rate is 2% per year, and the expected return on the market index is 10%. The fair price that Peter should pay for this stock is closest to: A. $56.03 B. $46.43 C. $45.14 D. $26.64