The Current Yield on Alpha's Ordinary Equity Is 4

Multiple Choice

The current yield on Alpha's ordinary equity is 4.8%.The company just paid a €2.10 dividend.The rumor is that the dividend will be €2.205 next year.The dividend growth rate is expected to remain constant at the current.What is the required rate of return on Alpha's equity?

A) 10.04%
B) 16.07%
C) 21.88%
D) 43.75%
E) 45.94%