Find the required return for a stock, given that the current dividend is $4.25 per share, the

Question:

Find the required return for a stock, given that the current dividend is $4.25 per share, the dividend growth rate is 6.5 percent, and the stock price is $101.00 per share.

a. 10.98%

b. 9.91%

c. 10.18%

d. 8.91%

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...