A share of common stock currently sells for $110. Current dividends are $8 per share, and are

Question:

A share of common stock currently sells for $110. Current dividends are $8 per share, and are expected to grow at 6 percent per year indefinitely. What is the rate of return required by investors in the stock?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...