You anticipate that Jack Enterprises (ticker: JE) will have earnings per share of

$3

this year. Furthermore, you expect that they will pay out

$2.25

of these earnings to shareholders in the form of a dividend at the end of this year. You estimate that JE's return on new investments is

14%

and their equity cost of capital is

15%.

Your expected growth rate for JE's dividends will be closest to:

A.

3.8%

B.

3.5%

C.

2.1%

D.

1.4%