McDonnell Manufacturing is expected to pay a dividend of $$1\mathrm{.}40$ per share at the end of the year $(D_1=$$$1\mathrm{.}40).$ The stock sells for $$33\mathrm{.}50$ per share, and its required

rate of return is $12\mathrm{.}5\%.$ The dividend is expected to grow at some constant rate, $g,$ forever. What is the equilibrium expected growth rate?

a$.12\mathrm{.}50\%$

b$.8\mathrm{.}32\%$

c$.8\mathrm{.}10\%$

d$.8\mathrm{.}64\%$