Olive Drab Inc.'s common stock currently sells for $25 per share, the expected dividend to be paid at the end of current year is $1.45 per share, and its expected long-term growth rate is 6.5%. Which of the following is Olive Drab's required rate of return on retained earnings as per the discounted cash flow (DCF) approach?

Olive Drab Inc.'s common stock currently sells for $25 per share, the expected dividend to be paid at the end of current year is $1.45 per share, and its expected long-term growth rate is 6.5%. Which of the following is Olive Drab's required rate of return on retained earnings as per the discounted cash flow (DCF) approach? a. 12.30% b. 5.35% c. 10.25% d. 6.80%