The earnings of a corporation increase at 2% per quarterly indefinitely. Each quarter the corporation plans to pay 40% of its earnings as stock dividends. At the start of a quarter, an investor purchases the stock to yield a nominal rate of 10 percent compounded semi-annually. The first stock dividend is 2.00 payable at the end of the quarter. Calculate the theoretical price of the stock.

A. 406 B. 418 C. 426 D. 435 E. 447