You are trying to estimate the intrinsic value of the shares of Flying High Ltd, a manufacturer of unmanned aerial vehicles, or drones. The company is headquartered in Melbourne, and sells its drones throughout Australia and New Zealand. It is a public company, but is not yet listed on the stock exchange. There are 30,000 shares outstanding. The firm pays an annual dividend. The most recent dividend was $2.6. Under what circumstances would you use the Residual Income Discount Model to value this stock?

a. The dividend varies from year to year. It is sometimes zero and sometimes positive, even though cash flow has been negative for the past 10 years and is expected to continue to be negative for the foreseeable future.

b. The dividend has been $2.6 every year for the past 10 years, and cash flow has been positive for that period of time and is expected to continue to be positive for the foreseeable future.

c. The dividend has been $2.6 every year for the past 10 years, even though cash flow has been negative for that period of time and is expected to continue to be negative for the foreseeable future.

d. The dividend varies from year to year. It is sometimes sometimes positive, but sometimes there is no dividend, even though cash flow has been positive for the past 10 years and is expected to continue to be positive for the foreseeable future.