Platinum Inc. has outstanding cumulative preferred stock with a par value of $$85\mathrm{.}00.$ The shares pay a $5\%$ annual dividend. Analysts are considering two possible scenarios and dividend payout options, based on the company's earnings outlook and market conditions.

Scenario $1$: There are no changes in market conditions or earning prospects and the company pays all preferred dividends on time.

Scenario $2$: The company has an opportunity to reinvest earnings into a project that will help grow earnings for the next $4$ years. No dividends will be paid for the $4$ years. The dividends will resume in year $5$ with the payment of all back dividends as well as the current dividend. Subsequent dividends will be paid on time.

Which of the two scenarios will result in a higher current value of the stock? Assume a required rate of return of $11\mathrm{.}5\%.$ Show your work.

Please provide a written calculation answer. Thank you.