A Stock Just Paid an Annual Dividend of $3

A stock just paid an annual dividend of $3.00 a share. With a reorganization of the company, dividends are expected to decrease by 20 percent in each of the next 2 years. After that, the dividend will resume its historical pattern of 3 percent annual increase. If the required return is 10 percent what is the price of the stock?

A) $27.12
B) $28.04
C) $28.64
D) $29.76
E) $24.13