Combined Communications is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 25 percent a year for the next 4 years and then decreasing the growth rate to 6 percent per year. The company just paid its annual dividend in the amount of $1.30 per share. What is the current value of one share of this stock if the required rate of return is 8.75 percent?

$77.83

$70.09

$83.90

$74.34

$94.92