TECMO Inc. retains most of its earnings. The company currently has earnings per share (EPS) of $18. TECMO expects EPS to grow at a constant rate of 2.0 percent per year. Furthermore, the average PE ratio of the firms industry is 16.2. TECMO is expected to pay dividends per share of $2.75 durning each of the next three years. If investors require a 11% rate of return on TECMO stock, what is a fair price for TECMO stock today?

a) $153.56

b) $200.54

c) $232.97

d) $75.18