Toms Business shares Ltd. has just bought a dividend of $0.60 per share on its ordinary shares. The company has been in business for five years, and expects that the dividend will grow at 10% for the next two years, after which it is expected to grow at 4% indefinitely. Also consider that the required rate of return for shares in this company is 15% per annum. The value of one share in Tom's business shares Ltd is approximately

Select one:

a. $6.31

b. $5.29

c. $8.22

d. $7.48