The Brown Company just announced that it will be increasing its annual dividend to $$1\mathrm{.}70$ next year and that future dividends will be increased by $25\%$ annually. How much would you be willing to pay for one share of the Brown Company stock if you require a $12\%$ rate of return?

Select one:

a$.$ $$19\mathrm{.}81$

b$.$ $$17\mathrm{.}58$

c$.$ $$14\mathrm{.}35$

d$.$ $$14\mathrm{.}63$

e$.$ $$17\mathrm{.}89$

Stock $x$ has a market price of $$4580$ per thare. An November call option with a strike price of $$45$ costs $$40$ per share. What is the time value