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You plan to buy 100 shares of Old Dominga's stock, and you observe the price is $47.77 per share. When the annual dividend is distributed,

You plan to buy 100 shares of Old Dominga's stock, and you observe the price is $47.77 per share. When the annual dividend is distributed, you expect to receive $2.33 per share next year. The company increases its dividends by 1.65 percent per year. What is the market rate of return that you expect to get from this stock?

A.

7.28 percent

B.

4.84 percent

C.

6.53 percent

D.

7.67 percent

E.

6.41 percent

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