Rocks & Wood Construction Co. recently paid $3.50 as an annual dividend. Future dividends are projected at $3.75, $4.25, and $4.50 over the next 3 years, respectively. Beginning four years from now, the dividend is expected to increase by 2% annually. What is one share of this stock worth to you today if you require a 7% rate of return?

Select one:

a. $75.34

b. $78.98

c. $85.83

d. $89.69

e. None of the above.