The Royal Ridge Resort expects an earnings per share of $9 in the coming year. Investors require a 20% required rate of return. The Royal Ridge Resort expect to grow in the future and, therefore, wants to retain 45% of its future earnings (this retention will remain constant in the future). These earnings can be reinvested, bearing 20 percent return on equity (this expected return on equity will remain unchanged in the future). Based on this information, the future growth rate of the Royal Ridge Resort is equal to:

Group of answer choices

a. 9%

b. 7%

c. 6%

d. 8%