Judy's Boutique Just Paid an Annual Dividend of $1

Judy's Boutique just paid an annual dividend of $1.48 on its common stock and increases its dividend by 2.2 percent annually.What is the rate of return on this stock if the current stock price is $29.60 a share?

A) 7.31 percent
B) 8.37 percent
C) 7.54 percent
D) 8.19 percent
E) 8.33 percent