A stock is expected to pay a dividend of $3.00 next year. Dividends are expected to grow at an annual rate of 4%. What is the required rate of return on the stock if the current market price is $60?

A stock is expected to pay a dividend of $3.00 next year. Dividends are expected to grow at an annual rate of 4%. What is the required rate of return on the stock if the current market price is $60?

14%

11.5%

10%

9%

8.29%