Daily Movers Is a Relatively New Firm

Daily Movers is a relatively new firm. The company paid its first annual dividend yesterday in the amount of $.40 a share. The company plans to double each annual dividend payment for the next 2 years. After that time, it is planning on paying a constant $2 per share indefinitely. What is one share of this stock worth today if the market rate of return on similar securities is 14.5%?

A) $12.17
B) $12.44
C) $12.68
D) $12.84
E) $12.87