Franklin Corporation is expected to pay a dividend of $$1\mathrm{.}25$ per share at the end of the year $(D_1=$$$1\mathrm{.}25).$ The stock sells for $$21\mathrm{.}00$ per share, and its required

rate of return is $10\mathrm{.}5\%.$ The dividend is expected to grow at some constant rate, $g,$ forever. What is the equilibrium expected growth rate?

Select the correct answer.

a$.4\mathrm{.}29\%$

b$.4\mathrm{.}81\%$

c$.4\mathrm{.}03\%$

d$.4\mathrm{.}55\%$

e$.3\mathrm{.}77\%$