Get Rich Quick,a Funds Management Company,is Considering an Investment in a New

Get Rich Quick,a funds management company,is considering an investment in a new pharmaceutical company.The company will be unable to pay a dividend until the end of year six but if a new product is successfully developed for sale at that time the dividends will be significant.The year-six dividend will be $8.00,the year-seven dividend will be $10.00 and dividends will grow by 8 per cent thereafter.If the required rate of return is 18 per cent,what is the maximum price Get Rich Quick should pay?

A) $100.00
B) $40.01
C) $58.75
D) $40.75
E) $38.59