I calculated and I got B as the correct answer.

I do not use formulas in these questions.

If there is no growth, that means all the earnings would be given to the shareholders and there will be no reinvestment. If there is no reinvestment, there is no growth

That implies the value would be EPS/cost of equity i.e. 5.04/0.15 = 33.6. As there is no growth EPS would not grow in 2020. it will remain the same.

If they want to grow, they have to reinvest, that implied they give 40% as dividends and reinvest the rest 60% for growth.

In that case the dividends paid would be 0.4*5.04 = 2.016

This wil grow as perpetual growth rate of 5%

hence the value would be 2.016*1.05/ 0.15-0.05 = 21.26

So the value of growth is Value with growth - Value with no growth

21.26-33.6 = -12.4