Logistics Just Paid an Annual Dividend of $2

Multiple Choice

Logistics just paid an annual dividend of $2.20 and announced that all future dividends would be $2.25 a share indefinitely.What is your required rate of return if you are willing to pay $15.25 a share for this stock?

A) 14.75 percent
B) 16.07 percent
C) 13.88 percent
D) 13.67 percent
E) 14.50 percent