DEX Inc. just distributed $1.5 dividend. The expected dividend growth

will be 5% per year for 10 years. The growth rate will then change after

the initial 10 years. The current stock price is $40 and the required return

is 10%. What is the implied growth rate after the initial 10 years?

A. 1.64%

B. 8.45%

C. 13.55%

D. 6.62%

E. 6.45%