AA Co. has just paid a dividend of $0.53. Next years dividend is expected to be 15% higher, after which the dividend will remain the same indefinitely. Assuming shareholders require a rate of return of 20%, what is the price of the stock today?

Answers

A 11.96

B 10.40

C 2.60

D 2.99

Please provide solution working :) I got 2.99 by doing 0.598/0.2