The Sports Club Plans to Pay an Annual Dividend of $1.20

The Sports Club plans to pay an annual dividend of $1.20 per share next year, $1.12 per share a year for the following two years, and then a final liquidating dividend of $14.20 per share four years from now. How much is one share of this stock worth to you today if you require a rate of return of 18.7 percent of this risky investment?

A) $9.63
B) $8.36
C) $7.56
D) $12.60
E) $10.30