Question $26(1\mathrm{.}67$ points$)$

Listen

$xYZ$ stock is currently selling for $$70\mathrm{.}00.$ It is expected to pay a dividend of $$5\mathrm{.}00$ at the end of the year. Dividends are expected to grow at a constant rate of $8\%$ indefinitely. Compute the required rate of return on ABC Corporation stock.

A$)8\mathrm{.}00\%$

B$)7\mathrm{.}14\%$

C$)15\mathrm{.}14\%$

D$)16\mathrm{.}12\%$