ABX Ltd currently does not pay a dividend to its shareholders but equity analysts expect that

the company will start paying a $1.20 dividend at the end of year 3. They expect this dividend

to grow at an annual rate of 4% over the foreseeable future. If the required return on ABXs

shares is 12% its share price today should be closest to:

a) $11.10.

b) $11.96.

c) $15.00.

d) $15.60.