A	B
1	stock price	$10
2	Last dividend	$0.75
3	Growth rate	3%
4	Required rate of return	?

Moonlighting Inc. stock is selling for $10 and the last dividend annual payment was $0.75. What is the correct formula for cell B4 to calculate the required rate of return if dividends are expected to grow at 3% per year? please explain

a. =B2*(1 -B3)/B1-B3

b. =B1*(B2-B3)/(1+B3)

c. =B2*(1+B3)/B1+B3

d. =B1/(B2-B3)*(1+B3)

e. =B2*(1+B3)/(B1+B3)