Question: Suppose Microsoft, Inc. is trading at $27.29 per share. It pays an annual dividend of $0.32 per share, which is double its last years dividend

Suppose Microsoft, Inc. is trading at $27.29 per share. It pays an annual dividend of $0.32 per share, which is double its last years dividend of $0.16 per share. If this trend is expected to continue, what is the required return on Microsoft?

Note*: the target/expected price is not given.

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