4. Gray Manufacturing is expected to pay a dividend of $1.25 per share at the end of the year (D1 = $1.25). The stock sells for $42.50 per share (PO = $42.50), and its required rate of return is rs = 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate (i.e. g)? a. 6.91% b. 2.94% c. 13.01% d. 7.46% e. 6.07%