Use the following information

Usable area (sq. ft)	110,000
Current rent per square foot per month	$29
Average vacancy rate on usable area	8%
Number of car parks	150
Average monthly car park income per car park	$3,000
Property taxes: Government rent and rates	6% of total rental revenue
Management, security and maintenance cost	25% of total rental revenue
Profit tax rate	15%
Constant growth rate of rental and car park income	5.5%
Current property value	$1,300,000,000

What is the required rate of return for the property?

Select one:

a. 5.78%

b. 6.50%

c. 8.42%

d. 5.12%

e. 7.77%