A stock is expected to pay its first $2.9 dividend in 5 years from now (t=5). The dividend is expected to be paid annually forever and grow by -3% pa (note the negative sign). The discount rate is 7% pa. Estimate what the stock price will be in 5.25 years from now. The stock price at time 5.25 is expected to be:

Select one:

a.

$29.4947

b.

$29

c.

$28.6099

d.

$26.7382

e.

$24.7144