KCP Inc. is expected to maintain a constant 3.2 percent growth rate in its dividends indefinitely. If the company has a dividend yield of 5.1 percent, what is the required return on the companys stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Multiple Choice

• 6.90%

• 7.30%

• 8.00%

• 8.30%

• 9.30%