Von Bora Corporation (VBC)is Expected to Pay a $2

Von Bora Corporation (VBC) is expected to pay a $2.25 dividend at the end of this year. If you expect VBC's dividend to grow by 6.5% per year forever and VBC's equity cost of capital is 12.5%, then the value of a share of VBC is closest to:

A) $37.50
B) $40.00
C) $51.10
D) $35.40