Westover Winds Just Paid a Dividend of $2

Westover Winds just paid a dividend of $2.50 per share. The company will increase its dividend by 8 percent next year and will then reduce its dividend growth rate by 2 percentage points per year until it reaches the industry average of 2 percent dividend growth, after which the company will keep a constant growth rate forever. What is the price of this stock today given a required return of 12 percent?

A) $28.42
B) $28.99
C) $31.83
D) $32.06
E) $32.47