Gorilla Manufacturers made two announcements concerning its common stock today. First, the company announced that the next annual dividend will be $2.75 a share. Secondly, all dividends after that will decrease by 2.5 percent annually. What is the maximum amount you should pay to purchase a share of this stock today if you require a 20 percent rate of return?

a. $13.01

b. $12.22

c. $12.27

d. $11.79

e. $13.00