An analyst is assessing the valuation of Fabricated Fabrics, whose stock trades at $30. The company has announced it expects to earn $1.50 per share for the following year and pay a dividend of $0.90 per share. Fabricated Fabrics has achieved an EPS growth rate of 5% and investors expect this growth rate and level of payout to continue indefinitely. What is the return required (or expected) by investors?

Group of answer choices

8.0%

4.5%

5.0%

3.0%

2.0%