Best Value Outlet recently announced that it intends to pay no dividends for the next two years. It plans to resume dividends in year 3 by paying a dividend of $0.75 per share, and then pay a dividend of $1.25 per share in year 4. After that, the plan is to increase the dividend by 3 percent annually. What is the current value of this stock if the applicable discount rate is 14 percent?

a. $7.80

b. $9.88

c. $8.18

d. $9.19

e. $8.14