You Are Evaluating the Purchase of Cool Toys, Inc

You are evaluating the purchase of Cool Toys, Inc.ordinary shares that just paid a dividend of $1.80.You expect the dividend to grow at a rate of 12%, indefinitely.You estimate that a required rate of return of 17.5% will be adequate compensation for this investment.Assuming that your analysis is correct, what is the most that you would be willing to pay for the ordinary shares if you were to purchase them today? Round to the nearest $.01.

A) $36.65
B) $91.23
C) $51.55
D) $74.82