Banner Corporation Will Not Pay Dividends Until Year 3, Whereby

Banner Corporation will not pay dividends until year 3, whereby it is expected to pay $5 in dividends. Dividends are then expected to grow at 20%, 10% and 5% in years 4, 5 and 6. Afterwards, dividend growth will stabilize to 2% consistently. If the rate of return is 10%, determine the stock price in year 3.

A) $83.84
B) $84.34
C) $84.84
D) $85.34
E) $85.84