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%. Upon conducting a more detailed analysis, you now conclude that the firm is still in the growth stage of a company's life cycle. You believe the dividend will grow at 8% for the next 2 years and will then settle down to a constant growth rate of 2.4% in perpetuity. If you use a 2-stage dividend discount model, assuming that the dividend grows at 8% in Years 1 and 2, and then grows at 2.4% in Year 3, what will be the value of the dividend in Year 3?

a. $3.11

b. $2.88

c. $3.35

d. $3.28