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Han Solo Transportation made two announcements concerning its common stock today. First, the company announced that the next annual dividend (to be paid next year)

Han Solo Transportation made two announcements concerning its common stock today. First, the company announced that the next annual dividend (to be paid next year) will be $1.75 a share. Secondly, all dividends after that will decrease by 1.5 percent annually. What is the maximum amount you should pay to purchase a share of this stock today if you require a 14 percent rate of return? The answer is A. How do you get it? A. $11.29 B. $12.64 C. $13.27 D. $14.00 E. $14.21

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