A stock you are buying today promises no dividends for a long time. In exactly 5 years the stock will pay its first dividend of $2.30. At that time you also believe the stock could be sold for $43.00. If today you can buy the stock for $28.95, what is your expected annual rate of return from buying today, receiving the dividend and selling in 5 years?
a. 9.36%
b. 8.46%
c. 10.10%
d. 5.63%
e. 7.93%