ABC Ltd last paid a dividend of $0.25 per share and this dividend is expected to grow at 5% per annum in perpetuity. If there are 1 million shares issued and the company's cost of equity is 20% per annum, what is the market value of equity?

a)$1,565,000

b)$3,000,000

c)$2,850,000

d)$1,750,000