Carl Is Evaluating a Stock That Just Paid a Dividend

Carl is evaluating a stock that just paid a dividend of $2.00 per share. He expects this dividend to grow by 4% per year, and he has determined that 11% is the appropriate required return. What is the most he should pay for the stock?

A) $18.18
B) $18.91
C) $28.57
D) $29.71