Palm Beach Beachwear Has Ordinary Shares That Are Listed on the ASX

Palm Beach Beachwear has ordinary shares that are listed on the ASX and have just paid a dividend of $1.25.They have announced that next year's dividend will be increased to $1.50 but that this dividend will not change in the foreseeable future.Current investors have indicated that they expect a return of 12 per cent.Based on this information,at what price would you expect the share to trade at immediately after this announcement?

A) $12.50
B) $10.41
C) $21.50
D) $10.00
E) $10.50