An equity analyst from Jefferies & Co. expects Johnson & Johnson (NYSE: JNJ) current annual dividend of $1.50 to grow by 25% in one year and by 15% for two consecutive years. The analyst then forecasts the initial non-linear supernormal dividend growth rate of 15% to decline linearly to a final and constant growth rate of 8% over a 10-year period. Company's estimated cost of equity is 12%. Which of the following is closest to the estimate of the terminal value at the end of third year? O $97.54 O $88.65 O $94.27 O $63.10