The parent company of KFC, Pizza Hut, and Taco Bell (Yum! Brands) has hired PepsiCo executive Chris Turner as its new CFO. Yum just paid an annual dividend of $1.65 & increased its dividend by 2.5 percent, which it does each year. What is the required return on Yum! Brands common stock if the current stock price is $38.20 a share?

Group of answer choices

7.37 percent

6.93 percent

7.54 percent

8.19 percent