Consider the Constant Growth DDM

Consider the constant growth DDM.In a non-inflationary environment,KD Picture Frame Company is expected to pay a dividend of $2.60 in the coming year,the growth rate of dividends is expected to be 0%,and the required return on the stock will be 8%.If the inflation rate is 4%,KD Picture Frame Company is expected to pay a dividend of $2.70 in the coming year,the dividend growth rate will be 4%,and the required return on the stock will be 12.32%.In the non-inflationary environment,a share of the KD Picture Frame's stock should be worth _________.

A) $20.00
B) $30.00
C) $31.25
D) $32.50
E) none of these