The Dividends for a Particular Stock Are Expected to Grow

The dividends for a particular stock are expected to grow at 10 percent for 3 years and then 2.5 percent indefinitely. If the stock just paid an annual dividend of $1.20 a share last year and the required return is 12 percent, what is the price of the stock?

A) $13.27
B) $15.74
C) $19.32
D) $17.64
E) $11.38