M&D Enterprises Paid Its First Annual Dividend Yesterday in the Amount

Multiple Choice

M&D Enterprises paid its first annual dividend yesterday in the amount of $.28 a share.The company plans to double each annual dividend payment for the next three years.After that time,it plans to pay a constant $2.25 per share indefinitely.What is one share of this stock worth today if the market rate of return on similar securities is 11.5 percent?

A) $19.41
B) $18.40
C) $17.46
D) $16.93
E) $17.13