21. A firm is planning on paying its first dividend of $2 exactly three years from today. Then dividends are expected to grow at 6% per year indefinitely so expected dividends will be 2 x 1.06 = $2.12 in year 4, 2.12 x 1.06 = 2.247 in year 5, and so on. The stock's required return is 14%. What is the intrinsic value of a share today (rounded to two decimal places)?

1. $16.87
2. $19.24
3. $20.39
4. $21.93
5. None of the above