Question: Abbott, Inc., is expected to maintain a constant 2% annual growth rate in its dividends, indefinitely. If the company has just paid $1.5 annual dividend

Abbott, Inc., is expected to maintain a constant 2% annual growth rate in its dividends, indefinitely. If the company has just paid $1.5 annual dividend and its current price is $62 per share, what comes closest to the required return on the companys stock?

Abbott, Inc., is expected to maintain a constant 2% annual growth rate in its dividends, indefinitely. If the company has just paid $1.5 annual dividend and its current price is $62 per share, what comes closest to the required return on the companys stock?

7.5%

3.5%

6%

4.5%

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