A company is expecting its sales to decline and has announced that it will be reducing its annual dividend by 5.50% a year for the next two years. After that, it will maintain a constant dividend of $1.00 a share. Just recently, the company paid a dividend of $2.40 per share. What is this stock worth if you require a 9.50% rate of return?

$12.32

$12.64

$12.95

$13.27

$13.59