AAA firms required return = 12.00%, the price of the stock = $40 per share. D₀ = $1. Dividend will grow by 30% for the next four years. After the fourth year, the dividend will grow at the rate of g forever. Find g. (hint: D₄ = $1.00(1.30)⁴.

a. 5.17%

b. 6.34%

c. 5.72%

d. 6.02%