Question: A) The next dividend payment by Wyatt, Inc., will be $3.00 per share. The dividends are anticipated to maintain a growth rate of 4.25 percent,

A) The next dividend payment by Wyatt, Inc., will be $3.00 per share. The dividends are anticipated to maintain a growth rate of 4.25 percent, forever. Required: If the stock currently sells for $49.60 per share, what is the required return?

B)

Rabie, Inc., has an issue of preferred stock outstanding that pays a $6.00 dividend every year, in perpetuity.

Required:

If this issue currently sells for $80.60 per share, what is the required return?

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