Discraft Inc

Discraft Inc.is expected to pay an annual dividend of $1 at the end of the current year.(Discraft pays its dividends annually.) The dividend is expected to grow quickly over the ensuing year at the rate of 20%.Starting two years from today the growth rate of dividends will fall to a rate of 3% and continue at that rate in perpetuity.Investors require a 12% return on the stock.Estimate the market price of the shares of Discraft in one year's time (at Year 1) just after the next dividend is paid.

A) $11.24
B) $11.62
C) $12.80
D) $13.33
E) $14.82