Valorous Corporation will pay a dividend of $1.85 per share at thisyear's end and a dividend of $2.40 per share at the end of next year. It is expected that the price ofValorous' stock will be $43 per share after two years. If Valorous has an equity cost of capital of 8%, what is the maximum price that a prudent investor would be willing to pay for a share of Valorous stocktoday?

A.

$42.67

B.

$40.64

C.

$34.54

D.