3. A company is currently paying no dividend and will not pay one for several years. If the company starts paying dividend of $1.5 per share five years from now, and the dividend is expected to grow at 5% thereafter. What is the value of the companys stock per share today, if your required rate of return is 11 per cent?

a $10.98

b. $16.47

c. $17.5

d. $9.09