Space Travel Inc. paid out $$125,000$ in dividends last year. The company has $500,000$ shares outstanding with a current stock price of $$45$ per share. Both the number of shares and the dividend payout ratio are constant. What is the required rate of return $($discount rate$)$ if the dividend growth rate is $4\mathrm{.}6$ percent?

Space Travel Inc. paid out $$125,000$ in dividends last year. The company has $500,000$ shares outstanding with a current stock price of $$45$ per share. Both the number of shares and the dividend payout ratio are constant. What is the required rate of return $($discount rate$)$ if the dividend growth rate is $4\mathrm{.}6$ percent?

$5\mathrm{.}18\%$

$3\mathrm{.}29\%$

$4\mathrm{.}95\%$

$6\mathrm{.}25\%$