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% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
15th Edition
978-0357438480, 0357438485
