You are considering acquiring a common share of ABC Shopping Center Corporation that you would like to hold for 1 year. You expect to receive $1.25 in dividends and $35 from the sale of the share at the end of the year. The maximum price you would like to pay for a share of ABC today is __________ if you wanted to earn a 12% return. (Hint: work backwards, using holding period return formula)

1. $31.25
2. $32.37
3. $34.45
4. $35.83
5. $38.47