You anticipate that Liebendauer Enterprises (ticker: LBE) will have earnings per share of $3 this year. Furthermore, you expect that they will pay out $1.50 of these earnings to shareholders in the form of a dividend at the end of this year. You estimate that LBE's return on new investments is 16% and their equity cost of capital is 11%. Your expected growth rate for LBE's dividends will be closest to:

A.

3.2%

B.

4.8%

C.

8%

D.

5.5%