A stock is expected to pay its first $320 dividend in 1 year from now. The dividend is expected to be paid annually forever and grow by -3% pa (note the negative sign). The discount rate is 5% pa. Estimate the current stock price. The current stock price should be:

a.

$6,400

b.

$4,320

c.

$4,000

d.

$3,809.52

e.

$3,628.12