Kroger Inc. paid a $3 dividend on December 31, 2020. Kroger dividends are expected to grow at a rate of 12% per year in the next five years; then it is expected to decline from 12% to 3% over the next 5 years; from year 10 to 11 and after that, Kroger's dividends will grow at a perpetual rate of 3%. Kroger's cost of equity is 7%. Use the variable growth dividend discount model to estimate the fair value of Kroger stock based on the expectations above?

HINT: Decline in growth from year 5 to 10 is monotonic; the growth drops to 3% in year 10. Group of answer choices

a. 142.16

b. 95.13

c. 36.50

d. 131.63

PLEASE SHOW WORK.