Ace Frisbee Corporation Produces a Good That Is Very Mature

Ace Frisbee Corporation produces a good that is very mature in their product life cycles.Ace Frisbee Corporation is expected to pay a dividend in year 1 of $3.00,a dividend in year 2 of $2.00,and a dividend in year 3 of $1.00.After year 3,dividends are expected to decline at the rate of 2% per year.An appropriate required return for the stock is 8%.Using the multistage DDM,the stock should be worth __________ today.

A) $13.07
B) $13.58
C) $18.25
D) $18.78