Last year, when the stock of Ward, Inc., was selling for $28 a share, the dividend yield was 3.5%. Today, the stock is selling for $35 a share. What is the required return on this stock if the company maintains a constant dividend growth rate of 5 percent?

Select one: a. B. 8.28%

b. A. 7.94%

c. C. 8.72%

d. D. 8.78

e. E. 8,93%