J&J Tools Pays No Dividend at the Present Time

J&J Tools pays no dividend at the present time. The company plans to start paying an annual dividend in the amount of $.25 a share for 3 years commencing next year. After the 3 years, the
Company plans on paying a constant $1 a share dividend indefinitely. How much are you willing to
Pay to buy a share of this stock if your required return is 13%?

A) $4.72
B) $4.99
C) $5.45
D) $5.92
E) $6.35