Stock Values the next dividend payment by Top Knot, Inc., will be $2.50 per share. The dividends

Question:

Stock Values the next dividend payment by Top Knot, Inc., will be $2.50 per share. The dividends are anticipated to maintain a 5percent growth rate forever. If the stuck currently sells for $48.00 per share, what is the required return?

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...