• Please provide step by step explanation as to how the answer was found.

Question::::::

If Boyd Integrated Systems Inc. just paid a dividend of $1.50 per share, and that dividend is expected to grow at a constant rate of 3% per year in the future. The company's beta is 1.20, the market risk premium is 5.5%, and the risk-free rate is 2.5%. What is the company's current stock price?

a. $20.56

b. $22.10

c. $23.75

d. $25.33

e. $27.00

• Please show formula.