A stock sells for $75 and currently pays a dividend of $0.50. The current T-bill rate is 1% and the stock has a beta of 0.45.

6. _______

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

A. 13.7%

B. 12.5%

C. 11.9%

D. 10.8%

E. 9.3%