Dominica Co. just announced that it will commence paying annual dividends. It plans to pay $4.75 a year for four years, $4.25 a year for the following three years, and then cease paying dividends altogether. How much is one share of this stock worth to you today if you require a 6 percent rate of return?
a) $27.32
b) 25.46
c) 21.67
d) 23.15