Tarp Corporation is a young start-up company. No dividends will be paid over the next ten years because the firm needs to plow back its earnings to fuel growth. The company will pay $3 per share dividend in year 11 and will increase the dividend by 6% per year thereafter. If the required return on this stock is 15%, what is the current share price?

Multiple Choice

$7.24

$7.54

$7.84

$8.04

$8.24