Betty Is Contemplating Purchasing Shares in Daily Bugle Corp

Betty is contemplating purchasing shares in Daily Bugle Corp.and holding them for 2 years,at which time she will sell them.The market price of these shares is expected to be $36.50 in two years (after the second dividend) .The next two annual dividends are expected to be: D1=$1.00 and D2=$1.20.The first dividend will be paid on one year and the second in two years.Betty requires a return of 11%.What is the maximum price Betty is willing to pay for shares in this company?

A) $30.53
B) $30.60
C) $31.33
D) $31.50
E) $31.99