Mason Motorworks is having financial difficulty, and will have to reduce the dividend on their common stock by 4% per year for the foreseeable future. The company just paid a dividend of $3 per share, and the stock is currently trading on the market at $19.07. What is the required rate of return of the stock?

Multiple Choice

• 18.5%

• 19.1%

• 22.5%

• 11.1%

• 10.5%