The Elder Co. is in downsizing mode. The company paid a $2.50 annual dividend last year. The company has announced plans to lower the dividend by $.50 a year. Once the dividend amount becomes zero, the company will cease all dividends permanently. The required rate of return is 14.5 percent. What is one share of this stock worth?

A.$3.85

B.$3.48

C. $4.87

D.

$4.13

E.$4.39