Treynor Industries Has Paid Annual Dividends of $1

Treynor Industries has paid annual dividends of $1.55, $1.70, and $1.85 a share over the past three years, respectively. The company now predicts that it will maintain a constant dividend since its
Business has leveled off and sales are expected to remain relatively constant. Given the lack of
Future growth, you will only buy this stock if you can earn at least a 16% rate of return. What is the
Maximum amount you are willing to pay to buy one share of this stock today?

A) $9.97
B) $11.56
C) $12.78
D) $13.41
E) $13.54