Using the dividend discount approach what is the required rate of return on the equity? The current stock is trading at $$45.$ Today's dividend is $$3\mathrm{.}25.$ The expected growth rate in perpetuity is $4\mathrm{.}5\%.$

$12\mathrm{.}0\%$

$11\mathrm{.}7\%$

$7\mathrm{.}54\%$

Not enough information to determine