Renew It,Inc

Multiple Choice

Renew It,Inc.,is preparing to pay its first dividend.It is going to pay $0.45,$0.60,and $1 a share over the next three years,respectively.After that,the company has stated that the annual dividend will be $1.25 per share indefinitely.What is this stock worth to you per share if you demand a 10.8 percent rate of return on stocks of this type?

A) $6.67
B) $8.21
C) $10.14
D) $11.47
E) $12.03