XYZ company is about to pay a dividend of $6.27 per share. The dividend is expected to grow at a rate of 12 percent annually. If the current cum-dividend stock price of XYZ is $61.06, what is the required rate of return?

Select one:

a. 24.8 percent

b. 12.8 percent

c. 58.5 percent

d. 23.4 percent