40) MBA Inc. will pay a dividend for the first time at the end of 2013. It projects the following dividend per share:

2013 $1.50

2014 $2.00

2015 $2.50

Beginning with 2016 dividends will grow at 4% per year. The required rate of return is 12%. The intrinsic value of MBA shares is

40) ______

A) $38.50. B) $28.96. C) $27.85. D) $25.37.