Dexter Metals,paid Its First Annual Dividend Yesterday in the Amount

Multiple Choice

Dexter Metals,paid its first annual dividend yesterday in the amount of $0.18 a share.The company plans to double each annual dividend payment for the next 3 years.After that time,it plans to pay $1.25 a share for 2 years than then pay a constant dividend of $1.60 per share indefinitely.What is one share of this stock worth today if the market rate of return on similar securities is 10.24 percent?

A) $12.32
B) $12.77
C) $13.20
D) $14.26
E) $14.79