The required rate of return on the shares of Grady Co. is 11.25%. The expected dividend next year is R0.70 a share which equates to a dividend yield of 1.5%. What is the growth rate of the shares?

Select one:

a. 12.75%

b. 11.25%

c. 8.00%

d. 1.50%

e. 9.75%