The current dividend yield on Mike's Fashions common stock is 2.75 percent. The company just paid a $2.45 annual dividend and announced plans to pay $2.60 next year. The dividend growth rate is...

Please answer the following multiple choice

Extracted text: The current dividend yield on Mike's Fashions common stock is 2.75 percent. The company just paid a $2.45 annual dividend and announced plans to pay $2.60 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on this stock? O 9.04 percent O 9.51 percent O 8.87 percent O 7.25 percent O 7.82 percent