Analysts expect Oscorp Industries to make payouts of $2.28B at the end of this year. Assume that all payouts occur annually at the end of the year and that we are at the beginning of the year. Analysts forecast that Oscorps payouts will grow at a constant rate in perpetuity. Oscorp stockholders require a return of 9%. Oscorp has 2.33B shares outstanding and its shares are currently trading for $16.31. What growth rate has the market priced into Oscorps share price?

A) 2%

B) *3%

C) 4%

D) 5%

E) 6%

Looking for the process work to understand why the solution is B) 3%.