Stock valuation Question valuation, increase, required, company, annual

siavosh

9.Assume a company has earnings per share of $5 and this year paid out 40% in dividends. The earnings and dividend growth rate for the next 3 years will be 20%. At the end of the third year the company will start paying out 100% of earnings in dividends and earnings will increase at an annual rate of 5% thereafter. If a 12% rate of return is required, the value of the company is approximately:
A) $92.92.
B) $102.80.
C) $55.69.
D) $104.80.
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Thamnks