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The stock of Varun Inc is selling for $30 a share. After analyzing the stream of dividends over the past 10 years, you find out

The stock of Varun Inc is selling for $30 a share. After analyzing the stream of dividends over the past 10 years, you find out that the first dividend was $1.00 and the last dividend was $2.00. According to the constant dividend growth model, what is the firm's expected return? Assume that the past dividend growth rate will persist in the future.

A. 14.32%

B. 12.98%

C. 15.78%

D. 11.43%

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