Shirley's Cool Treats is expecting their ice cream sales to decline due to the increased interest in healthy eating. Thus, the company has announced that they will be reducing their annual dividend by 4% a year for the next four years. After that, they will maintain a constant dividend of $1 a share. Last year, the company paid $1.80 per share. What is this stock worth to you if you require a 12% rate of return?

A) $9.29

B) $10.27

C) $11.30

D) $12.07

E) $13.10

Please write down the steps step by step, as I am not allowed to use any financial calculator and excel during my exam. Thank you.