Assume that a company's earning-per-share (EPS) are 2.50 in the current year (t=1), but that these are expected to grow at a 1% rate until time t=10.

Starting from time t=11,the EPS remain constant at the level expected for time t=10.The company's payout ratio is 50%, and its discount rate is 8%.What is the current (t=0) value of the growing stream of dividends (i.e., those from t=1 to t=10).Hint: Use the annuity formula to answer this question

A 8.7205

B 6.2834

C 10.2891

D 9.2381