A Company's Current Stock Price Is $65

Multiple Choice

A company's current stock price is $65.40 and it is likely to pay a $2.25 dividend next year. Since analysts estimate the company will have an 11.25 percent growth rate, what is its expected return?

A) 3.44 percent
B) 3.61 percent
C) 11.25 percent
D) 14.69 percent