Shares of Bleckwell Remodelers common stock are currently selling for $32.50 a share. The last annual dividend paid was $2.25 per share. The market rate of return is 14%. At what rate is the dividend growing?

A) 6.62%
B) 6.84%
C) 7.06%
D) 7.13%
E) 7.25%

Market Rate of Return

The average annual return generated from a market or a specific investment over a specific period, often considered a benchmark.

Annual Dividend

The total payment a company makes to its shareholders out of its profits over the course of a year.

Dividend Growing

A situation where a company consistently increases the amount of dividends paid to shareholders over time.