New Corp. just paid a per-share annual dividend of $1.50. The company is planning on paying $1.62, $1.68, $1.75, and $1.80 a share over the next four years, respectively. After that, the dividend will be a constant $2.00 per share per year. What is the market price of this stock if the market rate of return is 15 percent?
a. $6.00
b. $9.09
e. $12.48
c. $11.57
d. $8.49
