Suppose that you estimate that LOHI Corp. will skip its next three annual dividends, but then resume paying a dividend, with the first dividend paid to be equal to $1.00. If all subsequent dividends will grow at a constant rate of 6 percent per year and the required rate of return on LOHI is 14 percent per year, what should be its price?

a. $6.35

b. $8.44

c. $10.37

d. $12.50