Please help with the following question....

Celaya Industries just paid a dividend of D0 = $1.25. Analysts expect the company's dividend to grow by 20% this year, by 15% in Year 2, and at a constant rate of 4% in Year 3 and thereafter. The required return on this low-risk stock is 8.50%. What is the best estimate of the stock's current market value?

A) $36.71

B) $38.25

C) $39.87

D) $40.66

E) $41.59

*Please show formula as to how the answer was found.