Thirty-one Choices is expecting its ice cream sales to decline due to the increased interest in healthy eating. Thus, the company has announced that it will be reducing its annual dividend by 4% a year for the next two years. This morning, it just paid a dividend of $1.5/share. After two years, Thirty-one Choices will maintain a constant dividend of $1.20 a share. The discount rate to its equity is 10%. The value of the stock is closest to what answer?

a. $14.44

b. $13.25

c. $14.99

d. $12.80

e. $13.95