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ChangeCo.'s stock trades now for $20.40 a share and pays an annual dividend that is expected to increase by 2.00% annually. The company just paid

ChangeCo.'s stock trades now for $20.40 a share and pays an annual dividend that is expected to increase by 2.00% annually. The company just paid a dividend of $.80 a share. Due to a change in the company's risk profile, its expected rate of return changed and the price of the stock recently increased by 125.0% as a result. What is the percentage point change in the expected rate of return of the stock (hint: only the company's expected rate of return changed - everything else remained constant)?

a.)

The percentage point change in the expected rate of return is 9.00%.

b.)

The percentage point change in the expected rate of return is -2.00%.

c.)

The percentage point change in the expected rate of return is -3.92%.

d.)

The percentage point change in the expected rate of return is -5.00%.

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