$9)$ You expect KT industries $($KTI$)$ will have earnings per share of $$8$ this year and expect

that they will pay out $$5$ of these earnings to shareholders in the form of a dividend. KT$\text{'}$s

returm on new investments is $20\%$ and their equity cost of capital is $13\%.$ The expected

growth rate for KTI's dividends is closest to

A$.13\%$

B$.12\mathrm{.}5\%$

C$.7\mathrm{.}5\%$

D$.3\mathrm{.}9\%$