Simplicity Is a Relatively New fiRm That Appears to Be

Simplicity is a relatively new firm that appears to be on the road to great success. The company paid their first annual dividend yesterday in the amount of $0.15 a share. The company plans to
Double each annual dividend payment for the next four years. After that time, they are planning on
Paying a constant dividend of $2.50 per share indefinitely. What is one share of this stock worth
Today if the market rate of return on similar securities is 13.45%?

A) $12.32
B) $12.77
C) $13.77
D) $14.22
E) $14.37