Question
A stock currently sells for $37 and just paid an annual dividend of $1.10. Investors expect the dividend to grow at 5 percent annually. What
A stock currently sells for $37 and just paid an annual dividend of $1.10. Investors expect the dividend to grow at 5 percent annually. What required return do investors have for this stock?
|
| 2.97 percent |
|
| 7. 97 percent |
|
| 8.12 percent |
|
| It depends on what the future selling price of the stock will be. |
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Advanced Modelling In Mathematical Finance
Authors: Jan Kallsen, Antonis Papapantoleon
1st Edition
3319458736, 978-3319458731
