Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $1 coming 3 years from today. The dividend should grow rapidly at a rate of 40% per year during Years 4 and 5; but after Year 5, growth should be a constant 5% per year. If the required return on Computech is 10%, what is the value of the stock today?

Select one: a. $28.48 b. $32.65 c. $33.98 d. $40.05