Engine Builders stock sells for $24.20 a share. The firm just paid an annual dividend of $2 per share and has a long-established record of increasing its dividend by a constant 2.5 percent annually. What is the market rate of return on this stock?

Select one:

a. 10.97%

b. 11.46%

c. 12.34%

d. 10.70%

e. 14.41%