The next dividend payment by Hot Wings, Inc., will be $2.15 per share. The dividends are anticipated to maintain a 3 percent growth rate forever.

If the stock currently sells for $60 per share, what is the required return? HINT: The stock price is the present value of future dividends, or Price = D₁ / (r - g). Solve for r, the discount rate (also called the required return)

A) 3.58%

B) 6.45%

C) 6.25%

D) 6.58%

E) 3.00%