Phantron Inc. just paid $1.40 to their shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 3% percent. If you require a 8 per-cent rate of return, how much are you willing to pay to purchase one share of the stock?

a. $28.84

b. $36.40

c. $40.00

d. $49.00

e. $46.66