A fast growth share has the first dividend (t=1) of $2.82. Dividends are then expected to grow at a rate of 7 percent p.a. for a further 3 years. It then will settle to a constant-growth rate of 2.8 percent. . If the required rate of return is 14 percent, what is the current price of the share? (to the nearest cent)

a.

$27.19

b.

$27.79

c.

$62.48

d.

$25.18