Question: The next dividend payment by Im, Incorporated, will be $3.97 per share. The dividends are anticipated to maintain a growth rate of 2.5 percent forever.

  1. The next dividend payment by Im, Incorporated, will be $3.97 per share. The dividends are anticipated to maintain a growth rate of 2.5 percent forever. If the stock currently sells for $22.14 per share, what is the required return?

Report your to answer in percentages, but do not include the percent sign (%) and round it to 2 decimal places, , e.g. 7.86

Can you give an answer and explain ? Thank you!

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