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As you know, any individual's view of opportunity cost is likely to be different from others. Prices in the market - whether bonds or stocks
As you know, any individual's view of opportunity cost is likely to be different from others. Prices in the market - whether bonds or stocks - communicate something about what market participants overall see as opportunity cost. Or, in more market specific terms, required returns. So say you see that Fake Company Zeta closed today at $15.09. You also know that the company just announced its most recent annual dividend of $2.49. Plus, the company has a history of increasing dividends about 2.2% each year. Given this information, what is the market communicating about a required return on this stock? Enter your answer as a regular percent rounded to the nearest first decimal. Do not use percent signs, dollar signs, or commas. For example, if you calculated 0.1147, you would enter 11.5, which is properly rounded. Or if you calculated 0.0924, then enter 9.2
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