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A certain stock currently sells for $75 and is paying a dividend of $0.50 right now. This stock has a beta of 0.45 and the

A certain stock currently sells for $75 and is paying a dividend of $0.50 right now. This stock has a beta of 0.45 and the T-bill rate is 1%.

If the market expects a 10% rate of return on this stock, what dividend growth rate do the figures imply?

A. 13.7%

B. 10.8%

C. 11.9%

D. 12.5%

E. 9.3%

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