Elizabeth is considering buying shares in Junee Providoring Limited. She thinks that a suitable figure for the required rate of return for this company is 12% per annum. She has forecast what she thinks the company will earn over the next four years, and thinks that the company can pay the following dividends:

Year 1: 7 cents per share

Year 2: 10 cents per share

Year 3: 12 cents per share

Year 4: 15 cents per share

Longer term, Elizabeth thinks that dividends can grow at 3.5% per annum. Based on these assumptions, one share in Junee Providoring Limited is worth approximately:

a.$1.45

b.$1.42

c.$1.48

d.$1.51