A stock you are buying today promises no dividends for a long time. In exactly 5 years the stock will pay its first dividend of $2.30. At that time you also believe the stock could be sold for $43.00. If today you can buy the stock for $28.95, what is your expected annual rate of return from buying today, receiving the dividend and selling in 5 years?

Select one:

a. 9.36%

b. 8.46%

c. 10.10%

d. 5.63%

e. 7.93%