Shirley's Sandwiches expects earnings per share of this year (at t= 1) of $13.34. The company has a large number of good projects and plans to reinvest all earnings with a return on new investment of 17.0%. This will continue until t=8. At that point, the firm expects to have fewer good projects. It will, therefore, begin paying a dividend of 20% of earnings (the first payment at t=8), with all remaining earnings reinvested with a return on new investment of 5.5%. The payout ratio and return on new investment is expect to stay constant forever. If Shirley's cost of equity capital is 13.7%, what is the current price of the stock? O a. $37.80 O b. $39.21 O c. $36.74 O d. $40.49 Oe. $35.05