Question: The next dividend payment by Savitz, Inc., will be $4.15 per share. The dividends are anticipated to maintain a growth rate of 4 percent forever.

The next dividend payment by Savitz, Inc., will be $4.15 per share. The dividends are anticipated to maintain a growth rate of 4 percent forever.
If the stock currently sells for $47 per share, what is the required return?

Multiple Choice

  • 12.57%

  • 8.83%

  • 12.19%

  • 4.00%

  • 12.83%

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