Martin's Inc. is expected to pay annual dividends of $2.50 a share for the next three years. After that, dividends are expected to increase by 3% annually. What is the current value of this stock to you if you require a 9% rate of return on this investment?
A) $42.92
B) $41.81
C) $40.11
D) $39.47
Please show how you got the answer.