Massey Motors Is a New Firm in a Rapidly Growing

Massey Motors is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 10% a year for the next 3 years and then decreasing the growth rate to 4% per year. The company just paid its annual dividend in the amount of $1.00 per share. What is the current value of one share of this stock if the required rate of return is 13.75%?

A) $12.08
B) $12.21
C) $12.26
D) $12.37
E) $12.45