A's stock pays a dividend once each year, and it just paid a dividend of $0.85 yesterday.
Fantastic news! We've Found the answer you've been seeking!
Question:
A's stock pays a dividend once each year, and it just paid a dividend of $0.85 yesterday. The current market price of the stock is $12.14. If investors believe that A will increase its dividends by 7 percent per year forever, what is the required rate of return on A's stock?
Required
Calculate the required rate of return.
Related Book For
Posted Date: