Westover Winds Just Paid a Dividend of $2

Multiple Choice

Westover Winds just paid a dividend of $2.10 per share.The company will increase its dividend by 8 percent next year and will then reduce its dividend growth rate by 2 percentage points per year until it reaches the industry average of 2 percent dividend growth,after which the company will keep a constant growth rate forever.What is the price of this stock today given a required return of 11 percent?

A) $26.54
B) $28.99
C) $31.83
D) $32.06
E) $32.47