Question
COM-USA Inc. has been maintaining an annual growth rate of 4% in its dividends. This is expected to continue indefinitely. The company just paid a
COM-USA Inc. has been maintaining an annual growth rate of 4% in its dividends. This is expected to continue indefinitely. The company just paid a dividend of $2.60 per share and its stock is selling at $26.00 per share.
What is the required rate of return for COM-USA?
|
| A. | 8.0% |
|
| B. | 14.4% |
|
| C. | 12.9% |
|
| D. | 13.8% |
|
| E. | 10.4% |
|
| F. | 14.0% |
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Financial Accounting Theory
Authors: William R. Scott
7th edition
132984660, 978-0132984669
