The next dividend payment by Hot Wings, Inc. will be $2.10 per share. The dividends are anticipated

Question:

The next dividend payment by Hot Wings, Inc. will be $2.10 per share. The dividends are anticipated to maintain a 5 percent growth rate forever. If the stock currently sells for $48 per share, what is the required return?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...