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 the following three (3) years, and then cease paying dividends altogether. How much is one share of this stock worth to you today if you need a 12 percent rate of return?
A) $4.09
B) $4.40
C) $3.65
D) $5.89
E) $3.34