Martha's Vineyard Recently Paid a $3

Multiple Choice

Martha's Vineyard recently paid a $3.60 annual dividend on its common stock. This dividend increases at an average rate of 3.5% per year. The stock is currently selling for $62.10 a share. What is the market rate of return?

A) 2.5%
B) 3.5%
C) 5.5%
D) 6.0%
E) 9.5%