Dragon Trucking Just Paid Its Annual Regular Cash Dividend of $1.25

Dragon Trucking just paid its annual regular cash dividend of $1.25 a share,along with a special dividend of $0.25 a share.The company follows a policy of increasing its dividend by 3 percent annually.Which one of the following is the best estimate of the firm's next annual dividend payment?

A) $1.25
B) $1.29
C) $1.49
D) $1.50
E) $1.54