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Valorous Corporation will pay a dividend of $ 1 . 9 5 per share at this year's end and a dividend of $ 2 .

Valorous Corporation will pay a dividend of $1.95 per share at this year's end and a dividend of $2.45 per share at the end of next year. It is expected that the price of Valorous' stock will be $44 per
share after two years. If Valorous has an equity cost of capital of 10%, what is the maximum price that a prudent investor would be willing to pay for a share of Valorous stock today?
A. $40.16
B. $38.15
C. $42.17
D. $34.14
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