JAY Corp Is Expected to Pay a Dividend of $5

JAY Corp. is expected to pay a dividend of $5.00 per year indefinitely. If the appropriate rate of return on this stock is 13 percent per year, and the stock consistently goes ex-dividend 30 days before the dividend payment date, what will be the expected maximum price in light of the dividend payment logistics?

A) $3.16
B) $38.08
C) $38.46
D) $43.03