A company paid an annual dividend of $1.25 a share last month. The company plans to pay $2, and $2.75 a share over the next 2 years, respectively. After that, the dividend will be constant at $3 per share per year. What is the market price of this stock if the market rate of return is 7 percent?

a.

$16.07

b.

$15.9

c.

$24.10

d.

$41.71