HLI, Inc. is expected to pay a dividend of $2 per share at the end of the year, and cost of equity is 12%. If the current value of HLI 's shares based on the constant-growth dividend discount model is $35, what is constant growth rate if the dividend is expected to grow indefinitely? (rounded to 2 decimal points)

a.

9.28%

b.

None of the other choices

c.

6.29%

d.

7.14%