A stock you are buying today promises no dividends for a long time. In exactly 11 years you expect the stock will pay its first annual dividend of $1.60 . At that time, you also believe that the stock could be sold for $31.00 . If today you can buy the stock for $9.84, what is the expected annual rate of return on the stock investment?
a. 10.5%
b. 11.5%
c. 8.6%
d. 7.9%
e. 9.5%
Please show working out