Consider Trying to Value a Company Called Etail

Consider trying to value a company called Etail.com on January 1.It pays dividends annually on Dec.31.Yesterday's dividend was $1.Dividends are expected to grow for the next 2 years at 10% and then settle down to a long-run growth rate of 5% in perpetuity.Because of the initial riskiness of the company,investors required a 20% rate of return over the first 2 years,but only a 12% rate of return thereafter.What is the fair price for the stock today,January 1?

A) $13.76
B) $36.77
C) $14.36
D) $12.75
E) $14.96