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Russell Foods will pay a dividend of $2.28 next year. At a required return of 11.5 percent, the stock is valued at $43.20 a share.

Russell Foods will pay a dividend of $2.28 next year. At a required return of 11.5 percent, the stock is valued at $43.20 a share. What is the dividend growth rate at this price?

a. 6.12 percent

b. 5.37 percent

c. 5.28 percent

d. 5.99 percent

e. 6.22 percent

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