common stock sells for $29.37 a share. The stock is expected to pay $2.45 per share…

common stock sells for $29.37 a share. The stock is expected to
pay $2.45 per share next year when the annual dividend is
distributed. The firm established a pattern of increasing its
dividends by 1.5 percent annually and expects to continue doing so.
What is the market rate of return on this stock?