Confusion Corp Is Expected to Pay a Dividend of $2

Multiple Choice

Confusion Corp is expected to pay a dividend of $2 in the upcoming year. The risk-free rate of return is 4%, and the expected return on the market portfolio is 14%. The beta of Confusion Corp's stock is 1.25. If Confusion's intrinsic value is $21.00 today, what must be its growth rate?

A) 0.0%
B) 10%
C) 4%
D) 6%
E) 7%