Martha's Recently Paid an Annual Dividend of $3

Multiple Choice

Martha's recently paid an annual dividend of $3.60 on its common stock.This dividend increases by 2.5 percent per year.What is the market rate of return if the stock is selling for $32.65 a share?

A) 12.57 percent
B) 13.45 percent
C) 15.55 percent
D) 16.05 percent
E) 13.80 percent