A firm is expected to pay a dividend of $$2\mathrm{.}20$ in perpetuity. The stock of this firm is currently priced at $$26.$ What is the rate of return that stock holders expect to earn? $***$Hint$***$ use the Dividend Discount model and solve for $\text{'}$r$\text{'}.$

Group of answer choices

$8\mathrm{.}5\%$

$8\mathrm{.}9\%$

$8\mathrm{.}2\%$

$7\mathrm{.}8\%$

$4\mathrm{.}3\%$

$4\mathrm{.}1\%$

$3\mathrm{.}6\%$

$3\mathrm{.}4\%$