The next dividend for the Gordon Growth Company will be $2.85 per share. Investors require a 16 percent return on companies such as Gordon. Given the stiff competition in its market, Gordon has decided to DECREASE (think of it as a negative increase!) its dividend by 4.8% every year. What is the value of Gordon's stock today?

a. $13.70

b. $10.35

c. $12.54

d. $13.19

e. $9.78