Answer:
D. 9.0%
Step-by-step explanation:
Provided return on equity = 15% = K

Earnings per share = $6.00
Dividend = 40% = $6
0.4 = $2.40
Internal Growth Rate = Cost of equity
(1 - Dividend payout ratio)
Putting values in above we have
Internal growth rate = 15%
(1 - 40%)
= 15%
60%
= 9%
Therefore, correct option is
D. 9.0%