ALG recently paid a $$2,50$ dividend. The dividend is expected to grow at a $4\mathrm{.}0$ percent rate. At the current stock price of $$50$ what return are shareholders expecting? Hint: Use the expected return formula for the constant growth model. See the formula sheet.

$9\mathrm{.}00$ percent

$9\mathrm{.}20$ percent

$9\mathrm{.}40$ percent

$9\mathrm{.}30$ percent