You are thinking about buying some common stock of MagnaChip, Inc. The actual current market price is $33. MagnaChip has a long history of paying a dividend that steadily increases each year. Next year's dividend is anticipated to be $1.18 per share and you expect it to grow at 4% per year forever. If you purchase MagnaChip's stock for $33 per share, what rate of return do you expect to earn?

A. 11.88%

B. 11.58%

C. 4.08%

D. 7.58%

E. Cannot solve for expected return without knowing the CAPM inputs.