Question 1 (3 points) A firm's current stock price (Po) is $40. The most recent dividend per share (Do) is $2.5 and the dividend is expected to grow at a rate of 8% per year. Based on the constant growth model, what is the required rate of return on the firm's stock ik? (Use 4 decimal places when doing the calculation. Hint: Constant growth model formula can be found in Chapter 7 PowerPoint Slides #15. #16, and #19) 13.45% b 14,75% 19.25% 14.25% Od