Coats & More just announced that it will commence paying annual dividends next year. It plans to pay $.75 year for four years, $.90 a year for following three years, and then cease paying dividends altogether. How much is one share of this stock worth to you today if you require a 12 percent rate of return? Show your calculations.
A) $4.40
B) $5.89
C) $3.34
D) $4.09
E) $3.65