Caneast Ltd will pay its first dividend of $1.00 per share at the end of year 3 (t=3). Thereafter the dividend is expected to grow at 4% per year. If the cost of equity capital is 10% per annum, what is the current share price using the Dividend Discount Model (DDM)?

Select one:

A.

$7.25

B.

$12.52

C.

$13.77

D.

$16.67