Tootsie Roll Inc

Tootsie Roll Inc.pays annual dividends that are expected to grow in perpetuity at the rate of 2% per annum.The next dividend is expected to be $1.50 and it will be paid in one year.The price of Tootsie Roll shares is currently $21.43.If you pay that price and hold Tootsie Roll shares,then what return do you expect to earn?

A) 9%
B) 8%
C) 7%
D) 10%
E) 11%