MC algo $8-21$ Calculating Required Return

The common stock of Eddie's Engines, Incorporated, sells for $$44\mathrm{.}48$ a share. The stock is expected to pay a dividend of $$2\mathrm{.}90$ per share next year. Eddie's has established a pattern of increasing their dividends by $5\mathrm{.}0$ percent annually and expects to continue doing so$.$ What is the market rate of return on this stock?

Multiple Choice

$11\mathrm{.}52\%$

$6\mathrm{.}52\%$

$14\mathrm{.}14\%$

$6\mathrm{.}05\%$

$15\mathrm{.}34\%$