Due to the advent and proliferation of life extension technology, the funeral services industry has been seeing a steady year-to-year decline.Press Fis a publicly-listed, low-cost chain of funeral homes that specialises in helping bereaved families pay respects. The firm has just paid its annual dividend of $3.34 per share. Shares ofPress Fcurrently trade on the market for a price of $16.80 each, with investors requiring a return of 16.4% per annum.

Based on the above information, which of the following is closest to the constant annual rate of decline that investors anticipate in the dividends ofPress F?

a. 2.67% b. 3.48% c. 2.90% d. 3.34% e. 4.34%