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Tarpon Bay Industries preferred stock pays an annual dividend of $2,50 per share. If the risk-free rate is 3%, the market risk premium is 8%,

Tarpon Bay Industries preferred stock pays an annual dividend of $2,50 per share. If the risk-free rate is 3%, the market risk premium is 8%, and Tarpon Bay's preferred stock is only 2/3 as risky as the market on average, what is the most that an investor should be willing to pay for a share of Tarpon Bay preferred stock TODAY?

A. $23.68

B. $39.37

C. $29.90

D. $57.38

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