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. The required rate of return is 18.97%. The Government has just announced that it will cut regulation affecting the drone industry, increasing the length of the growth period for Flying High. Taking this new information into account, you conclude that the dividend will now grow at 8% for the next 4 years and will then settle down to a constant growth rate of 2.4% in perpetuity. That means that the dividend in Year 5 (Div5) will be $3.62. What will the terminal value be? (This means the present value of Stage 2, as at the beginning of Stage 2/end of Stage 1. It is the value of all dividends from Div5 onwards, as at the beginning of the growing perpetuity, which is Year 4.)

a. $20.65

b. $20.14

c. $21.85

d. $19.82