You expect KT industries (KTI) will have earnings per share of $5 this year and expect that they will pay out $1.25 of these earnings to shareholders in the form of a dividend. KTIs return on new investments is 13% and their equity cost of capital is 15%. The expected growth rate for KTIs dividends is closest to ________.

A. 11.3%

B. 9.8%

C. 5.9%

D. 3.9%