Company A will be reducing its annual dividend by $1\mathrm{.}0\%$ a year for the next $2$ years. After that, it will pay a dividend of $$\mathrm{.}86$ a share, growing each year thereafter by $2\mathrm{.}0\%.$ This dividend stream with $2\mathrm{.}0\%$ growth per year is expected to last for $50$ years $($until the end of year $52),$ at which point each share can be exchanged for $$14\mathrm{.}00.$ The company recently paid a dividend of $$1\mathrm{.}90$ per share. What is this stock worth given a $7\mathrm{.}0\%$ required rate of return?

Question $1$ options:

The stock is worth $$17\mathrm{.}45.$

The stock is worth $$2\mathrm{.}60.$

The stock is worth $$27\mathrm{.}14.$

The stock is worth $$86\mathrm{.}00.$