Martin Corporation's Common Stock Is Currently Selling for $50 Per

Multiple Choice

Martin Corporation's common stock is currently selling for $50 per share. The current dividend is $2.00 per share. If dividends are expected to grow at 6 percent per year, then what is the firm's cost of common stock?

A) 10.0%
B) 10.2%
C) 10.6%
D) 10.8%
E) 11.0%