The company Stewart Tartans is expected to pay a dividend of $5 per share 1 year from now. Thereafter, dividends are expected to grow into the foreseeable future at a constant rate of 5% per annum. The current price of a share in the company is $20. Calculate the required annual rate of return for shares in Stewart Tartans.

a. 6%

b. 16%

c. 30%

d. None of the above