A stock is expected to pay its first $26 dividend in 3 years from now. The dividend is expected to be paid annually forever and grow by 2% pa. The discount rate is 6% pa. Estimate the current stock price. The current stock price should be:

Select one:

a.

$343.2406

b.

$514.8609

c.

$545.7525

d.

$578.4977

e.

$650