Denver Shoppes Will Pay an Annual Dividend of $1

Denver Shoppes will pay an annual dividend of $1.46 a share next year with future dividends increasing by 4.2 percent annually. What is the market rate of return if the stock is currently selling for $38.90 a share?

A) 6.55 percent
B) 7.13 percent
C) 7.46 percent
D) 7.95 percent
E) 8.29 percent