You are investing a coal mining company. The price and demand for coal is dropping. The company just paid its annual cash dividend of $6.35 a share. According to industry analysts, the annual cash dividend is expected to drop by 3% per year for the foreseeable future. Investors require an annual rate of return of 12% for the stock. Calculate the expected stock price for the mining stock.

Select one:

a. $43.69

b. $39.27

c. $40.91

d. $41.06

e. $42.63