Compton Corp. is expected to pay a $2.50 dividend to its common stockholders one year from today. You expect these dividends to grow at a constant annual rate of 5% indefinitely. The risk-free rate is 3% and the market risk premium is 7%. If Compton Corp.has a beta of 1.50, what is the expected percentage increase in the price of its common stock one year from today?

Select one: a. 3% b. 7% c. 5% d. none of the above