Arcs and Triangles Paid an Annual Dividend of $1

Multiple Choice

Arcs and Triangles paid an annual dividend of $1.47 a share last month. The company is planning on paying $1.52, $1.58, and $1.60 a share over the next three years, respectively. After that, the dividend will be constant at $1.65 per share per year. What is the market price of this stock if the market rate of return is 12 percent?

A) $13.98
B) $14.07
C) $13.54
D) $14.16
E) $15.01