Biotec Has Estimated the Costs of Debt and Equity Capital

Multiple Choice

Biotec has estimated the costs of debt and equity capital for various proportions of debt in its capital structure: $\begin{array}{lll}\% \text { of Debt } & \text { Cost of Debt }(\%) &\text { Cost of Equity }(\%) \\35 & 5.4 & 13.8 \\40 & 5.6 & 14.0 \\45 & 5.9 & 14.3 \\50 & 6.4 & 14.7\end{array}$
If Biotec pays a current dividend of $1.00 and expects dividends to grow at a constant rate of 7%, what is Biotec's stock price if it obtains its optimal capital structure?

A) $14.66
B) $30.40
C) $30.14
D) $29.40