Assume that price of the security discussed in Problem 2 was $30. Assume that all other information

Question:

Assume that price of the security discussed in Problem 2 was $30. Assume that all other information is the same except for the stockholders' required return. What does a $30 price imply for return?
In Problem 2
Assume the next period's is $1, that stockholders require a 12% return, that new investment is expected to yield 14%, and that the retention rate is 50%.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...