1.Last year, when the stock of Waldo, Inc., was selling for $28 a share, the dividend yield was 3.5 percent. Today, the stock is selling for $35 a share. What is the required return on this stock if the company maintains a constant dividend growth rate of 5 percent?

A.7.94 percent

B.8.28 percent

C.8.72 percent

D.8.78 percent

E.8.93 percent