An Investor Expects Tom Fun Ltd to Pay a Dividend $\$ 6.98$

An investor expects Tom Fun Ltd to pay a dividend of $0.40 in year 1,$0.75 in year 2 and $.80 in year 3,after which the investor expects to sell the share for $8.95.The cost of equity capital is estimated to be 13.50% p.a.What is the present value of one share in Tom Fun Ltd?

A) $\$ 6.98$
B) $\$ 7.46$
C) $\$ 7.60$
D) $\$ 8.54$