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M&D Enterprises paid its first annual dividend yesterday in the amount of $.28 a share. The company plans to double each annual dividend payment for

M&D Enterprises paid its first annual dividend yesterday in the amount of $.28 a share. The company plans to double each annual dividend payment for the next three years. After that time, it plans to pay a constant $2.25 per share indefinitely. What is one share of this stock worth today if the market rate of return on similar securities is 11.5 percent?

a.$19.41

b.$18.40

c.$17.46

d.$16.93

e.$17.13

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