A Stock Is Priced at $38

A stock is priced at $38.24 a share and has a market rate of return of 9.65 percent.What is the dividend growth rate if the company plans to pay an annual dividend of $.48 a share next year?

A) 7.42 percent
B) 8.39 percent
C) 2.23 percent
D) 7.60 percent
E) 1.26 percent