4. Big D, Inc., just paid a dividend of $2.10 per share. Its current price is $ 38.75.

The company is expected to have a dividend growth of 3.4% forever.

What is the annual required return?

Report you answer in percentages, but do not include the percent sign (%) and round it to 2 decimal places, , e.g. 7.86

Can you explain and answer? Thank You!