Douglass Gardens Pays an Annual Dividend That Is Expected to Increase

Douglass Gardens pays an annual dividend that is expected to increase by 4.1 percent per year. The stock commands a market rate of return of 12.6 percent and sells for $24.90 a share. What is the expected amount of the next dividend?

A) $2.03
B) $2.12
C) $3.17
D) $2.20
E) $2.28