Halibust Ltd expects to pay its first dividend of $1.00 per share at the end of year 2 (t=2). Thereafter the dividend is expected to grow at 3% per year. If the cost of equity capital is 15% per annum, what is the current share price using the Dividend Discount Model (DDM)?

Select one:

A. $7.25

B. $8.33

C. $6.67

D. $6.30