Langley Enterprises pays a constant dividend of $1.30 a share. The company announced today that it will continue to do this for another 2 years after which time it will discontinue paying dividends permanently. What is one share of this stock worth today if the required rate of return is 7 percent?

a) $3.74

b) $2.12

C) $2.60

d) $3.50

e) $2.35