Bonus Question:

Mind$-$The$-$Gap Corp. is selling for $$30$ a share. In looking at the stream of dividend payments, you find that Mind$-$The$-$Gap's first dividend was paid $10$ years ago $($ $$1\mathrm{.}00)$ and the dividend paid at the beginning of the current year was $$2\mathrm{.}00.$ Find the firm's expected return. $($Hint: first find the dividend growth rate$).$

$10\mathrm{.}73\%$

$13\mathrm{.}75\%$

$11\mathrm{.}94\%$

$12\mathrm{.}88\%$

$14\mathrm{.}33\%$