You are trying to estimate the share price for WindStream Inc. You have forecasted the following information about earnings per share and dividends per share for the next five years (see table below). In addition, you know that after year 5 the company will maintain a constant payout rate of 70% in perpetuity. The companys equity cost of capital ( rE) is 12%, its return on new investment is 13%, and it currently has 200 million shares outstanding. Assume the company only pays dividends and doesn't repurchase shares. Based on the information provided, what is a good estimate for the firm's share price? Select the best one.

I.

$0.32

II.

$115.85

III.

$63.56

IV.

$51.16

V.

$99.85

\begin{tabular}{|lccccc|} \hline \multicolumn{7}{|c|}{ Earnings and Dividend Forecasts (in \$) } \\ Year & 1 & 2 & 3 & 4 & 5 \\ \hline Earnings per Share (in \$) & 7.50 & 8.25 & 8.75 & 9.15 & 9.50 \\ Dividends per Share (in \$) & 3.00 & 4.00 & 4.50 & 5.50 & 6.50 \\ \hline \end{tabular}