**PLEASE SHOW WORK

XYZ stock is expected to be priced at $45.80 in year 1. It is expected to pay its next dividend, which is expected to be $2.30, in 1 year. The stock has a beta of 1.30. The market has an expected return of 11.0% and the risk-free rate is 2.0%. What is the current price of XYZ stock?

A. $43.06 (plus or minus $0.10)

B. $42.30 (plus or minus $0.10)

C. $41.36 (plus or minus $0.10)

D. $44.13 (plus or minus $0.10)

E. None of the above