Main Street Tool & Die Is in a Downsizing Mode

Main Street Tool & Die is in a downsizing mode. The company paid a $2 annual dividend last year. The company has announced plans to lower the dividend by $.50 a year. Once the dividend
Amount becomes zero, the company will cease all dividends permanently. You place a required rate
Of return of 18% on this particular stock given the company's situation. What is one share of this
Stock worth to you today?

A) $2.29
B) $2.47
C) $2.68
D) $2.72
E) $2.83