The common stock of Dayton Repair sells for $43.19 a share. The stock is expected to pay $2.28 per share next year when the annual dividend is distributed. The firm has established a pattern of increasing its dividends by 2.15 percent annually and expects to continue doing so. What is the market rate of return on this stock?

• 7.28 percent

• 7.43 percent

• 7.67 percent

• 7.14 percent

• 7.59 percent