PPLG Company just paid a dividend of $3 per share. You believe that the dividend growth rate will be 10% for the next two years and the selling price of the stock will be $45 at the end of year 2. What is the maximum price you are willing to pay for the stock if you require a 15% return?

Select one:

a. $41.08

b. $36.41

c. $37.71

d. $39.64

e. $38.28