Ferris Athletic Equipment Plans to Pay an Annual Dividend of $1.90

Ferris Athletic Equipment plans to pay an annual dividend of $1.90 per share next year, $1.25 per share a year for the following two years, and then a final liquidating dividend of $11.50 per share four years from now.How much is one share of this stock worth to you today if you require a rate of return of 19.65 percent of this risky investment?

A) $8.80
B) $7.54
C) $6.74
D) $11.77
E) $9.47