For the next three years General Motors is expected to pay $1.50, $2.00 and $2.50 in dividends and after that dividends will grow at a constant rate of 4% annually. The required rate of return is 12%. Assuming the first dividend will be paid in exactly one year, the intrinsic value of General Motors shares is:

A.

$25.37

B.

$38.50

C.

$27.85

D.

$28.96