There are two investment options: Share X or Y. Company X just paid a dividend of $1 and the dividend is expected to grow at a constant rate of 2%. Share Y is currently traded at $24 each. Company Y recently paid a dividend of $1.50 and this dividend is expected to remain at the same level forever. What should the price of Company X's shares be if the risk level and the risk/returns trade-off of the two companies are the same? (rounded to 2 decimal points)

a.

$28.84

b.

$24.60

c.

$24.00

d.

$28.20