Suppose a company has a beta of 1.1. The risk-free rate is 5.6%, and the market risk premium is 6%. The current dividend of $2 is expected to grow at 5% indefinitely. The price of the stock is $40. What is the required rate of return for the company's stock?
A. 12.2%
B. 11.0%
C. 10.6%
D. 9.4%