Given the information below, calculate the expected growth rate (g) of dividends, using the constant growth model

Beta = 1.75; r_RF = 7 percent; r_M = 11 percent; dividend payout ratio = 30 percent; r_d = 10 percent (paid) on all long-term debt; P/E ratio = 10; sales = 5,000 units; sales price per unit = $5; variable cost per unit = $2; fixed cost = $1,000; common stock shares outstanding = 5,000; long-term debt outstanding = $10,000; tax rate = 40 percent. Assume equilibrium exists in the market.

	a.	11.0%
	b.	10.68%
	c.	11.34%
	d.	10.19%
	e.	6.54%