Terracotta plc has paid an annual dividend of 15p per share over the past 20 years and the current ex dividend market price of its shares is 1.36p. The company is considering accepting a new project, which it will finance by suspending dividends for the next 3 years. After this period, the company will pay an increased dividend of 19p per share for the foreseeable future. If the company takes on the project and uses the proposed method of financing, what will be the expected share price?

a) 1.36 b) 1.72 c) 1.60 d) 1.26 e) 1.13