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

Last week,Railway Cabooses paid their annual dividend of $1.20 per share.The company has been reducing the dividends by 5% 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) $6.00
C) $10.80
D) $12.67
E) $27.00