Due to an extensive investment in research and development, Banana, Inc., recently developed a new wireless communication system that should greatly increase the stock's dividend. One analyst believes the current annual dividend of $1 will increase by 20% for each of the next three years and then 6% for the foreseeable future. Calculate the intrinsic value per share of the company's stock assuming an investor's required rate of return of 8%.

A)

$95.91

B)

$91.50

C)

$76.35

D)

$78.49