PIN Ltd is a firm that has been underperforming for many years and has just had a change in management. The new management team have just made an announcement that they expect to start paying an annual dividend 4 years from today, and they expect that after the initial dividend of $4 it will grow at a constant rate of 4% per annum. The required rate of return for PIN Ltd shares is 16% per annum. Which of the following is closest to the value of PIN Ltd shares?

Group of answer choices

1.$21.36

2.$33.75

3.$18.41

4.$29.60