What is the rate of return if you purchase a stock today for $35 and sell it in five years for $43? Assume the stock pays an annual dividend of $2.8.

Answer choices:

• 10.43%
• 12.01%
• 11.62%
• 9.79%

\begin{tabular}{|l|r|r|r|r|r|r|} \hline & \multicolumn{7}{|c|}{ At the end of year: } \\ \hline & 0 & 1 & 2 & 3 & 4 & 5 \\ \hline Purchase Price & -35 & & & & & \\ \hline Dividend & & 2.8 & 2.8 & 2.8 & 2.8 & 2.8 \\ \hline Selling Price & & & & & & 43 \\ \hline \end{tabular}