Use FCFE to determine the value of a company's stock price when last year's sales were $5.25/share, sales growth is expected to be 3.5% for the next three years and 2.00% after that, profit margin is expected to remain around 22%, return on equity has been averaging 14%, and the required rate of return is 9.25%. What is the PVGO and does it constitute a large risk to the stock price?

a) $3.12; it does constitute a large risk since it is 52% of the value

b) $1.69; it does constitute a large risk since it is 72% of the value

c) $3.12; it does not constitute a large risk since it is only 12% of the value

d) $1.69; it does not constitute a large risk since it is only 12% of the value