The ABC Company, Inc. expects to pay a dividend of $1.50 at the end of the year. The dividend last period was $1.43, and the growth rate from this past year is expected to continue into the future. Given that the market rate of return is 10.2%, what is the approximate price that shares of ABC should be priced at by the market (based on the dividend discount model)?
$29.54
$28.28
$26.96
$27.11