Waynes Nurseries Ltd. has just paid 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. You consider that the required rate of return for shares in this company is 15% per annum. The value of one share in Waynes Nurseries Ltd is approximately

Select one:

a. $5.29

b. $7.48

c. $6.31

d. $8.22