Given the following data, what is the stock's expected growth rate according to the Gordon model?

Given the following data, what is the stock's expected growth rate according to the Gordon model?

Dividend per share just paid: $2

Current market price: $40

Required rate of return: .10

Assume the stock is priced in equilibrium.

Select one:

a. 6.94%

b. 4.76%

c. 2.01%

d. 5.65%

e. 3.32%