FineFoods Corp is planning to increase its annual dividends by 10% per year for the next three years. After that, the company plans to increase its dividends at a rate of 4% per year indefinitely. Investors demand a rate of return of 13.75%, and the company just paid a dividend of $1.00. What is the fair market price of one share of FineFoods Corp?

Select one:

a. $12.45

b. $12.26

c. $12.08

d. $12.21

e. $12.37