Grillsters Corporation has never paid a dividend, but expects to pay a dividend of $1.85 per share next year. The dividend is expected to grow at a 3 percent rate every year thereafter. Given the risk level of the stock, investors require a 13 percent return on this stock. What should be the market price of Grillsters common stock?

• A. $16.06
• B. $14.23
• C. $15.66
• D. $18.50
• E. $17.40