Bell Canada Enterprises (BCE) is listed on the Toronto Stock Exchange (TSX). Its common shares arecurrently traded at $62.90per share.Assumethat BCE has a history of growing dividends by 5% per year and that theexpected annual dividendby the end of the year (one year from now) is $2.80 per share.

Using the Dividend Growth Model, what is your estimate of the required rate of return on BCE stock?

Select one:

a.4.67%

b.4.45%

c.9.67%

d.9.45%