You expect KT industries(KTI) will have earnings per share of $5 this year and expect that they will pay out $2.50 of these earnings to shareholders in the form of a dividend. KTI's return on new investments is 16% and their equity cost of capital is 14%. The expected growth rate forKTI's dividends is closestto:

A.

4.8%

B.

3.2%

C.

8%

D.

7%