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Washington Industries stock currently sells for $50 a share. It just paid a dividend of $2.60 a share (that is, D 0 = $2.60). The

Washington Industries stock currently sells for $50 a share. It just paid a dividend of $2.60 a share (that is, D0 = $2.60). The dividend is expected to grow at a constant rate of 6.1 percent a year. What is the required rate of return?

a.

7.83%

b.

5.52%

c.

11.62%

d.

11.30%

e.

6.10%

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