An analyst produces the following series of annual dividend forecasts. The Expected dividends in year t+1, t+2 and t+3 are $10, $20 and $10, respectively. The analyst believes that dividends will be zero after year t+3. The companys cost of equity is 10 per cent. Under these assumptions, what will be equity value at the end of year t?

a.

$31.16

b.

$33.13

c.

$36.36

d.

$40