A company has just paid its first dividend of $3.76. Next year's dividend is forecast to grow by 9 percent, followed by another 9 per cent growth in year two. From year three onwards dividends are expected to grow by 2.7 percent per annum, indefinitely. Investors require a rate of return of 19 percent p.a. for investments of this type. The current price of the share is (round to nearest cent)

Select one:

a. $26.47

b. $23.32

c. $8.84

d. $9.32