According to the Gordon growth model, what will be the percentage change in the value of a stock of a company whose current dividend is $10.00 and whose dividends had been expected to grow by 3% but now are expected to grow by 4% per year? (Please consider the required return on equities is 10% while you answer this question.)

Select one:

A.

4.0%

B.

17.8%

C.

25.0%

D.

33.3%