Early in 2015, Mathew is analyzing shares of Janeff Corp. He expects the following dividends per share (end of year). 2015 $1.00 2016 $1.25 2017 $1.50

He expects 2017 earnings per share to be $4.50 and Janeff's P/E ratio to be 20. His required rate of return for this stock is 12%. He should pay no more than
A) $43.75 per share.
B) $67.02 per share.
C) $68.75 per share.
D) $93.75 per share.

Answer: B