The Sister's Market Is Preparing to Pay Its First Dividends

Multiple Choice

The Sister's Market is preparing to pay its first dividends. It is going to pay $.60, $1.10, and $1.50 a share over the next 3 years, respectively. After that, the company has stated that the annual dividend will be $1.98 per share indefinitely. What is this stock worth to you per share if you demand a 9% rate of return?

A) $18.22
B) $18.65
C) $19.08
D) $19.62
E) $20.11