Assume a firm will pay its first dividend in 2 years. This initial periods dividend is forecast to be $3.00 per share and is expected to grow at 6% per year in perpetuity. Assume WACC = 12%; the cost of equity is 14%; the cost of debt is 8% and the risk-free rate is 5%. The best estimate the todays share value using the discounted dividends method is: PLEASE EXPLAIN STEPS!!

a. $18.80

b. $21.42

c. $28.86

d. $32.89

e. $37.50