A fast growth share has the first dividend (t=1) of $1.07. Dividends are then expected to grow at a rate of 6 percent p.a. for a further 4 years. It then will settle to a constant-growth rate of 2.3 percent. . If the required rate of return is 15 percent, what is the current price of the share? (to the nearest cent)

a.

$8.43

b.

$9.39

c.

$26.52

d.

$6.80