The risk$-$free rate is $4\%$; the market risk premium is $8\%.$ LDC Company's stock has a beta of $1\mathrm{.}5.$ The last dividend was $$4\mathrm{.}5.$ The dividend growth rate $(g)$ is expected to be a constant of $10\%.$ The stock's current market price $(P_0)$ is $$75.$

If you buy the stock now, what is the expected rate of return for the first year? Assume that the stock price will reach the equilibrium level at $t=1$ if it is currently mispriced.

Select one:

a$.\mathrm{.}2543$

b$.\mathrm{.}2331$

c$.\mathrm{.}2145$

d$.\mathrm{.}2760$