DT Motors Paid Its First Annual Dividend Yesterday in the Amount

Multiple Choice

DT Motors paid its first annual dividend yesterday in the amount of $.15 a share. The company plans to double the dividend in each of the next 3 years. Starting in Year 4, the firm plans to pay $1.50 a share indefinitely. What is one share of this stock worth today if the market rate of return on similar securities is 13.8 percent?

A) $11.02
B) $10.77
C) $8.92
D) $10.26
E) $11.79