Last Week,Railway Cabooses Paid Its Annual Dividend of $1

Last week,Railway Cabooses paid its annual dividend of $1.20 per share. The company has been reducing the dividends by 10% each year. How much are you willing to pay to purchase stock in this company if your required rate of return is 14%?

A) $4.50
B) $7.71
C) $10.80
D) $15.60
E) $27.00