Answer:
option (e) 8.89%
Explanation:
Data provided in the question:
Dividend paid per quarter = $1.00
Price of the stock = $45.00
Now,
Annual dividend paid = Dividend paid per quarter × 4
= $1.00 × 4
= $4.00
Therefore,
Annual rate of return = [ (Annual dividend paid ) ÷ Stock price ] × 100%
= [ $4.00 ÷ $45 ] × 100%
= 8.89%
Hence,
Answer is option (e) 8.89%