You are trying to value an all equity firm which is in a stable growth phase. The firms beta is 0.8. T-bond is 6%, the current EPS is $5, the current dividend payout ratio is 50% and the expected growth in earnings and dividends is 4%. The market return is 12%. What is the value of this firm?

Select one:

a. $32.23

b. $38.23

c. $25.25

d. $34.12