MJ LTD is expected to grow at various rates over the next five years. The company just paid a $1.00 dividend. The company dividends are expected to grow at 20% for the next two years (years 1 and 2), then the company expects to grow at 10% for three additional years (years 3, 4, and 5) after which the company expects to grow at a constant rate of 5% per year indefinitely. If the required rate of return on MJ's common stock is 12%, then what is a share of MJ's stock worth? Show your work.
A. $23.50
B. $21.85
C. $25.60
D. $22.75