Answer:
D. $17.57
Explanation:
We can apply dividend discounted model (DDM) to value the stock of this company. DDM is stated as below:
Current stock price = Next year dividend/(Required rate of return - Dividend growth rate)
                 = T[his year dividend x (1 + Dividend growth rate)]/(Required rate of return - Dividend growth rate)
                 = [1.00 x (1 + 5.4%)]/(11.4% - 5.4%) = $17.57
