Rosita's Announced That Its Next Annual Dividend Will Be $1

Multiple Choice

Rosita's announced that its next annual dividend will be $1.65 a share and all future dividends will increase by 2.5 percent annually.What is the maximum amount you should pay to purchase a share of this stock if you require a rate of return of 12 percent?

A) $13.75
B) $17.80
C) $15.46
D) $16.94
E) $17.37