Question $6(1$ point$)$

$6.$ IBM Co$.$ is expected to have earnings of $\backslash (\backslash$$ $10\backslash )$ per share next year and is expected to grow at a constant rate. The ROE is $\backslash (18\backslash \%\backslash )$ and the firm retains $\backslash (60\backslash \%\backslash )$ of its earnings. The required rate of return on the stock is $\backslash (14\backslash \%\backslash ).$ The market price of IBM stock is currently $\backslash (\backslash$$ $100\backslash ).$ The expected growth rate is

$9\mathrm{.}00$

$10\mathrm{.}80$

$12\mathrm{.}60$

$7\mathrm{.}20$