The next dividend payment by ZYX, Inc., will be $2.85 per share. The dividends are anticipated to

Question:

The next payment by ZYX, Inc., will be $2.85 per share. The dividends are anticipated to maintain a 4.5 percent growth rate, forever. If ZYX stock currently sells for $84 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...