Business Solutions Is Expected to Pay Its First Annual Dividend

Business Solutions is expected to pay its first annual dividend of $.84 per share in Year 3. Starting in Year 6, the company plans to increase the dividend by 2 percent per year. What is the value of this stock today, Year 0, at a required return of 14.4 percent?

A) $5.01
B) $8.09
C) $8.29
D) $7.03
E) $9.34