The Company expects to announce their annual dividend of $ 1.31 next vear and promises to increase its dividends at 5.50 % perpetually. Even though you believe the required return on the stock is 14.00 % due to market conditions, you must purchase the stock for $ 6 above the intrinsic value today. At this higher purchase price, what is your expected rate of return?

12.30%

11.25%

11.62%

10.86%

11.97%