9. IBQ has been paying a dividend of $1.25 per quarter for several years. Its management plans to continue with this dividend for two more quarters and then to start increasing its dividend by 1% per quarter, with the first increase in the third quarter of this year. The planned increase in dividends will be announced today. If IBQ stock currently requires a return of 18% effective per year, how much should its stock price increase when the company makes the announcement?

(A) $8.80

(B) $6.94

(C) $5.50

(D) $4.40

(E) None of the above