At the last Board of Directors meeting of Williams Enterprises, it was decided to encourage the current CEO by giving a substantial bonus. Not only did she make few if any mistakes, in fact, the dividend was raised by 3% every year for the last 10 years, like clockwork. Assuming the last dividend the CEO declared was $1.50 per share, how much would an investor be willing to pay for one share of stock given a required return of 12% per year and which growth model is represented?
a. $3.47
b. $15.16
c. $17.17
d. $20.03
e. $26.96