A firm will start paying dividends four years from now and thereafter that will be expected to grow 5% into perpetuity. Expected dividend in year 4 is $5. If an investors required rate of return is 7%, the intrinsic value (price) of the stock is closest to:

1. A) $200

2. B) $204

3. C) $227

4. D) $250

5. E) Insufficient information