Analysts expect the following dividends from Jake Corp.: a dividend of $2.74 per share will be paid tomorrow. One year from now a dividend of $3.14 will be paid, two years from now a dividend of $3.88, and thereafter dividends are expected to grow at a constant rate of 7% per year permanently. According to the analysts, the cost of equity of the company will remain at 8.6%. The current share price is closest to (nearest cents):

a.

$228.93

b.

$223.45

c.

$226.19

d.

$211.51