The Common Stock of J

The common stock of J. K. Laminates sells for $32.60 a share. The stock is expected to pay $2.10 per share next month when the annual dividend is distributed. J. K.'s has established a pattern of increasing its dividends by 3.5% annually and expects to continue doing so. What is the market rate of return on this stock?

A) 6.44%
B) 6.67%
C) 7.03%
D) 9.94%
E) 10.29%