A company that expected to only exist for 4 years plans to make the following dividend payments $2.00 one year from now $1.50 three years from now, and a final dividend of $17.50 four years from now. After this time, the company will no longer exist. If investors demand a rate of return of 20% for holding the stock, how much would it be trading at today.

Select one:

1. $17.50

2. $21.00

3. $1.50

4. $2.00

5. $10.97