A firm has a current price of R40 a share, an expected growth rate of 11 per cent and an expected dividend per share (D1) of R2. Given its risk, you have a required rate of return for it of 12 per cent. Your expected rate of return and investment decision is as follows: 1. 10% - do not buy 2. 12% - do not buy 3. 14% - buy 4. 16% - buy