Grant Corporation's stock is selling for $40 in the market. The company's beta is 0.8, the market risk premium is 6 percent, and the risk-free rate is 9 percent. The dividend just paid was $2, and dividends are expected to grow at a constant rate. What is the growth rate for this stock?

a. 5.52%

b. 5.00%

c. 13.80%

d. 8.80%

e. 8.38%

Answer: e; Please show each step for the math.