Grant Corporation's stock is selling for $40 in the market. The company's beta is 0.8, the market risk premium is 6%, and the risk-free rate is 9%. The previous dividend was $2 and dividends are expected to grow at a constant rate. What is the stock's growth rate?
a. 5.52%
b. 5.00%
c. 13.80%
d. 8.80%
e. 8.38%