A company’s stock price currently is $66.37 per share. If the company’s last dividend was $5.10 per share and the dividends are expected to grow forever at a constant rate of 5.1% per year, what is the stock’s annual required return?
1) 12.5%
2) 14.1%
3) 13.2%
4) 11.7%
5) 10.4%