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Baggins Systems is a firm that has encountered some financial difficulties. The company projects that they will have enough cash flow to continue paying their

Baggins Systems is a firm that has encountered some financial difficulties. The company projects that they will have enough cash flow to continue paying their current dividend for 5 more years before they must stop paying a dividend altogether. The company just paid a dividend of $20.94, and will continue to pay the same dividend for the next 5 years, after which they will never pay another dividend. What is the value of their stock if the discount rate is 5.77%?
a. $86.06
b. $96.26
c. $88.76
d. $85.62
e. $90.62
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