A Share You Are Interested in Paid a Dividend of £1

Multiple Choice

A share you are interested in paid a dividend of £1 last week.The anticipated growth rate in dividends and earnings is 20% for the next year and 10% the year after that before settling down to a constant 5% growth rate.The discount rate is 12%.Calculate the expected price of the share.

A) £17.20
B) £17.91
C) £18.20
D) £19.40
E) £19.75