Zero-Sum Enterprise Expects to Pay an Annual Dividend of $0

Multiple Choice

Zero-Sum Enterprise expects to pay an annual dividend of $0.48 next year. Dividends and earnings have been growing at a compound annual rate of 8 percent and are expected to continue growing at that rate. What is the return on Zero-Sum if its price is $12?

A) 12.3%
B) 12.0%
C) 10.0%
D) 10.3%