WGM Inc. is a profitable company that is not paying a dividend on its common stock. James Weber, an analyst for A.G. Edwards believes that WGM will begin paying a $4.00 per share dividend in three years and that the dividend will increase 7% annually thereafter. James believes that the required return for WGM is 12%. According to James estimate, what is the current value of WGMs common stock?

a. $63.78

b. $80.00

c. $71.43

d. $75.00

e. $40.00