Shore Hotels Just Paid an Annual Dividend of $1

Shore Hotels just paid an annual dividend of $1.50 per share. The company will increase its dividend by 7 percent next year and will then reduce its dividend growth rate by 2 percentage points per year until it reaches the industry average of 3 percent dividend growth, after which the company will keep a constant growth rate forever. What is the price of this stock today given a required return of 14 percent?

A) $14.85
B) $18.99
C) $11.83
D) $16.54
E) $13.02