6. A firm pays a current dividend of $1, which is expected to grow at a rate of 5% indef. nitely. If the current value of the firm's shares is $35, what is the required return applicable to the investment based on the constant-growth dividend discount model (DDM)?

6. A firm pays a current dividend of $1, which is expected to grow at a rate of 5% indefi, nitely. If the current value of the firm's shares is $35, what is the required return applicable to the investment based on the constant-growth dividend discount model (DDM)? (LO 13-2)