A Stock Currently Does Not Pay an Annual Dividend

A stock currently does not pay an annual dividend.An investor expects this policy to remain in force.She believes, however, the stock of this company will sell for $110.00 per share four years from now.If she has an interest (discount) rate of 7% (0.07) , the dividend discount model predicts the current price of this stock should be:

A) You cannot apply the model to this example since it requires a dividend be offered
B) $82.00
C) $83.92
D) $86.35