Bearsbum Confection is experiencing decliningworld-wide sales of its number oneconfection, the petit ourson. It announced today that it is suspending dividends and stock repurchases and will resume them in two years. Analysts expect that total payouts will be $ 2.3

$2.3 billion in two years and that payouts will continue to be paid annually thereafter inperpetuity, growing at a rate of 2.4 %

2.4%. Bearsbum has 449

449 million shares outstanding and its investors require a return of 6.8 %

6.8%. What is the fair price for the sharestoday?

The stock price at time zerois:(Select the best choicebelow.)

A.

$ 76.31

$76.31

B.

$ 87.21

$87.21

C.

$ 109.01

$109.01

D.

$ 98.11