Balloons Inc normally pays a quarterly dividend. The last such dividend paid was $1.15, all future quarterly dividends are expected to grow at 5 percent, and the firm faces a required rate of return on equity of 12 percent. If the firm just announced that the next dividend will be an extraordinary dividend of $2.35 per share that is not expected to affect any other future dividends, what should the stock price be?

$17.25

$16.97

$18.27

$11.75