Refer to the previous exercise. What is the implicit required rate of return if dividends are expected

Question:

Refer to the previous exercise. What is the implicit required rate of return if dividends are expected to grow at a 5% annual rate?

Previous exercise

Calculate the stock price of OSE Water Co. if the difference between the required rate of return on this investment and the expected growth rate of dividends is 3.6% and dividends per share are $1.728.

In the IPO, eBay issued 3,500,000 new shares. The initial price to the public was $$ 18.00$ per share. The final first-day closing price was $$ 44.88.$

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