Keyser Trucking Just Paid Its Annual Regular Cash Dividend of $1.22

Keyser Trucking just paid its annual regular cash dividend of $1.22 a share, along with a special dividend of $0.25 a share. The company follows a policy of increasing its dividend by 2 percent annually. Which one of the following is the best estimate of the firm's next annual dividend payment?

A) $1.22
B) $1.24
C) $1.49
D) $1.50
E) $1.54