An analyst is trying to figure out the required return on a privately traded stock. He knows the dividend yield on the stock is 4.25 percent. He finds a similar publicly traded firm that has been paying a total return of 8.5 percent and has a dividend yield of 3 percent. Both firms are constant growth. Estimate kcs for the firm the analyst is studying. 6.38 percent 7.25 percent 8.50 percent 9.75 percent