Sorenson Corp. is not expected to pay dividends until three years later. The predicted dividend in the following future year-end is: D₃ = $3, D₄ = $3.6, D₅ = $4.32, and the price at the end of year 5 is P₅=116.64

The stock's required return is R = 12.00%.

What is the stock intrinsic value three years from now (P₃) based on the forecasts?

Select one:

a. $99.64

b. $101.63

c. $96.25

d. $105.19