New Gadgets Is Growing at a Very Fast Pace

New Gadgets is growing at a very fast pace.As a result,the company expects to pay annual dividends of $0.55,0.80,and $1.10 per share over the next three years,respectively.After that,the dividend is projected to increase by 5 per cent annually.The last annual dividend the firm paid was $0.40 a share.What is the current value of this stock if the required return is 16 per cent?

A) $9.67
B) $8.50
C) $12.23
D) $10.46
E) $12.49