The shares of company X trade today (t = 0) at 4.2 euros on the secondary market. The company has announced a 0.03 euros dividend for next year (t = 1). Moreover the dividend is expected to grow 0.29% per year. Determine the annual discount rate that the market is using to value this company.

a. 0.50%.

b. 0.03%.

c. Greater than 2%.

d. None of the above