) You expect KT Industries (KTI) will have earnings per share of $3 this year and expect that they will pay out $1.50 of these earnings to shareholders in the form of a dividend. KTI's return on new investments is 15% and their equity cost of capital is 12%. The value of a share of KTI's stock is closest to:

a) 39.25

b) 20.00

C) 33.35

D) 12.50

How do I solve for it step by step, please don't just give the answer. Thanks.