The Shoe Box will not pay a dividend for the next two years. In year 3 it will pay a dividend of $1.90 per share, and in year 4 it will pay a dividend of $3.00. Starting in year 5, the dividends will increase by 2.5 percent annually. The discount rate is 12.5 percent. What is the value of this stock today?

$18.16

$27.09

$22.40

$20.54

$23.52