After a successful and profitable merger, XYZ Corp has announced it will pay a special dividend of $4.00 in each of the next two years. After that (i.e. 3 years from today) the firm will resume its regular dividend payment at $1.75 three years from today which will then grow at a constant rate of 2.5% per year thereafter. Based on these projections and assuming a required rate of return of 6.4%, calculate the fair value for the stock today.

A. $54.57

B. $44.54

C. $46.93

D. 52.87