The Livingstone Company just paid $2.25 as its annual dividend. The dividends have been increasing at a rate of 5% annually and this trend is expected to continue. What price should the stock sell for if it has a beta of 1.2, the risk-free rate is 3%, and the required rate of return on the market is 12%?

$33.6

$13.7

$26.85

$11.89.