Stock Valuation Listen Close Co. is expected to maintain a constant 6.5 percent growth rate in its

Question:

Stock Valuation Listen Close Co. is expected to maintain a constant 6.5 percent growth rate in its dividends indefinitely. If the company has a dividend yield of 3.6 percent, what is the required return on the company’s stock?

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...