Mcom Co. is expected to pay a dividend of $4 per share at the end of year one and the dividends are expected to grow at a constant rate of 4% forever.  If the current price of the stock is $25 per share,  calculate the required rate of return or the market capitalization rate for the  stock.

1. A) 4%
2. B) 16%
3. C) 20%
4. D) None of the above.
5. E) None of the above