Southern Markets Recently Paid an Annual Dividend of $2

Southern Markets recently paid an annual dividend of $2.62 on its common stock. This dividend increases at an average rate of 3.8 percent per year. The stock is currently selling for $28.12 a share. What is the market rate of return?

A) 13.88 percent
B) 14.07 percent
C) 14.21 percent
D) 14.37 percent
E) 13.47 percent