You are considering whether to purchase a companys stock. The stock is expected to pay two dividends, $1.50 at the end of year 1 and $1.75 at the end of year 2. The expected selling price of the stock is $17.50 at the end of year 2. If you require a rate of return of 16% per year for the investment, what is the maximum price that you are willing to pay per share?

Select one:

a. $14.17

b. $15.49

c. $15.60

d. $14.51

e. $14.61