The Gray Furniture Co. earned 3.50 per share last year. Investment in fixed capital was 2.00 per share, depreciation was 1.60, and the investment in working capital was 0.50 per share. Gray is currently operating at its target debt-to-asset ratio of 40%. Thus, 40% of annual investments in working capital and fixed capital will be financed with new borrowings. Shareholders require a return of 14% on their investment, and the expected growth rate is 4%. The value of Gray's stock is closest to: O a. 30.78 O b. 29.90 c. 27.04