Johnson and Johnson pays annual dividends. It just paid a dividend of $0.80 per share. Johnson and Johnson is expected to increase its dividend to $1.00 per share one year from today (an increase of 25% over and above the dividend just paid). Thereafter (i.e. after t=1), Johnson and Johnson is expected to increase its dividend at a rate of 5% per annum indefinitely. If the required return for investing in Johnson and Johnson stock is 20% per annum, what is the fair value of the stock today?

A. $-20.00 B. $5.00 C. $5.20 D. $4.15 E. $6.67