A firm is expecting a:

$11 dividend to be paid to shareholders in one year (t=1);

$14 dividend the year after (t=2);

$20 dividend the year after (t=3); and from then on the

3% pa inflation rate which is expected to be the growth rate of the dividend which will be paid annually forever;

8% pa required return on equity;All returns and cash flows are given as nominal figures.

Estimate the current stock price. The stock's current price is estimated to be:

Select one:

a.$339.720825

b.$365.123457

c.$392.558299

d.$422.187929

e.$425