JCPenney Company Is Expected to Pay a Dividend in Year

JCPenney Company is expected to pay a dividend in year 1 of $1.65, a dividend in year 2 of $1.97, and a dividend in year 3 of $2.54. After year 3, dividends are expected to grow at the rate of 8% per year. An appropriate required return for the stock is 11%. The stock should be worth _______ today.

A) $33.00
B) $40.67
C) $71.80
D) $66.00
E) None of the options are correct.