Merriweather's Has a Policy of Increasing Its Annual Dividend by 1.75

Multiple Choice

Merriweather's has a policy of increasing its annual dividend by 1.75 percent each year.How much will one share be worth five years from now if the required rate of return is 15 percent and the next dividend will be $3.40?

A) $28.48
B) $27.99
C) $34.84
D) $28.60
E) $32.78