Toy Corp. currently has stock outstanding with a market price $25.00. The market anticipates that the company will pay a dividend of $1.50 per share next year and Greshak's return on equity has averaged 10.0% while the market's required rate of return for the stock is 11.0%. Given this information, what must the market's projected growth rate be for Toys' stock (rounded)?
Select one:
a. 3.5%
b. 4.0%
c. 4.5%
d. 5.0%
e. 6.0%