A fast growth share has the first dividend (t=1) of $1.31. Dividends are then expected to grow at a rate of 5 percent p.a. for a further 3 years. It then will settle to a constant-growth rate of 3.4 percent. . If the required rate of return is 18 percent, what is the current price of the share? (to the nearest cent)

a.

$9.30

b.

$25.61

c.

$8.97

d.

$6.13