The Next Dividend Payment by S&S Will Be $1

The next dividend payment by S&S will be $1.38 per share.The dividends are anticipated to maintain a 2.5 percent growth rate, forever.If the stock currently sells for $26.90 per share, what is the required return?

A) 8.03 percent
B) 7.82 percent
C) 7.63 percent
D) 8.74 percent
E) 9.02 percent