McDonalds (MCD) is a strong dividend payer, increasing its dividend every year since 2000. MCD currently pays a dividend of $3.56 per year per share (or $0.89 per quarter per share, with a dividend payout ratio of 71.74% according to Morningstar) which represents a 4.7% increase from its last dividend. Suppose we expect this level of dividend growth to continue indefinitely. Let MCDs current share value be $127.61 (the actual closing price on 4/12/16). Using the constant growth dividend discount model, what is MCDs required rate of return?