Gray Manufacturing is expected to pay a dividend of $1.65 per share at the end of the year (D₁ = $1.65). The stock sells for $35.00 per share, and its required rate of return is 10.5%. The dividend is expected to grow at some constant rate, g, forever. What is the equilibrium expected growth rate?

a. 4.27%

b. 5.21%

c. 4.71%

d. 5.79%

e. 6.23%