Determining the stock growth rate

Question

Problem:

A firm's recent dividend was $2.00 per share. The stock is selling in the market place for $50.00 per share. If investors are demanding 10% on this stock,

Required:

Question: What is this stock's growth rate?

• 4.73%
• 5.92%
• 6.00%
• 5.77%

Note: Provide support for rationale.