LCP, a Newly Formed Medical Group, Is Currently Paying Dividends

Multiple Choice

LCP, a newly formed medical group, is currently paying dividends of $.50. These dividends are expected to grow at a 20% rate for the next 5 years and at a 3% rate thereafter. What is the value of the stock if the appropriate discount rate is 12%?

A) $8.08.
B) $11.17.
C) $14.22.
D) $17.32.
E) $30.90.