The Dividend Yield on Alpha's Common Stock Is 5

Multiple Choice

The dividend yield on Alpha's common stock is 5.2 percent.The company just paid a $2.10 dividend.The rumour is that the dividend will be $2.30 next year.The dividend growth rate is expected to remain constant at the current level.What is the required rate of return on Alpha's stock?

A) 14.72 percent
B) 12.31 percent
C) 18.29 percent
D) 20.01 percent
E) 24.21 percent