Miller Brothers Hardware Paid an Annual Dividend of $1

Miller Brothers Hardware paid an annual dividend of $1.15 per share last month. Today, the company announced that future dividends will be increasing by 2.6 percent annually. If you require a 12 percent rate of return, how much are you willing to pay to purchase one share of this stock today?

A) $12.23
B) $12.55
C) $12.67
D) $12.72
E) $12.88