You are eyeing a stock that is projected to pay dividends in the 3 years of your holding period of $2.50, $2.95 and $3.20 per share. You expect the value at the end of year 3 to be $45 per share and your hurdle rate for investments is 8.50%. What is the max you should pay for the stock?

a. Forget it, the stock market is not dope.

b. The max value is $35.87

c. The market price is $38.65

d. The max value is $42.55