Pearl, Inc., is expected to maintain a constant 6.3 percent growth rate in its dividends, indefinitely. If

Question:

Pearl, Inc., is expected to maintain a constant 6.3 percent growth rate in its dividends, indefinitely. If the company has a dividend yield of 3.4 percent, what is the required return on the company’s stock?

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...