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Starduster Productions, Inc. stock is currently selling for $38. The companys next annual dividend is expected to be $1.00 per share. Dividend growth has been

Starduster Productions, Inc. stock is currently selling for $38. The companys next annual dividend is expected to be $1.00 per share. Dividend growth has been at a steady rate of 5%, and it is expected to continue at that rate. If you buy Starduster stock at the current price, what is the expected 1 year total return?

a.

7.76%

b.

5.25%

c.

7.63%

d.

2.63%

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