Suppose a firm called 3310 Final Exam, Inc. intends to pay $3 per share (starting in a year) in annual dividends that are expected to grow at a constant annual rate of 6% indefinitely. If the cost of equity (required return) is 12%, what is the most an investor should pay for one share of the stock?

A.

$33.33

B.

$53.00

C.

$83.33

D.

$25.00

E.

$50.00

Help with this question,please!