Question
Last week, Welch Industries paid their annual dividend of $1.04 on their common stock. The company predicts that the dividend will increase by 2.1% each
Last week, Welch Industries paid their annual dividend of $1.04 on their common stock. The company predicts that the dividend will increase by 2.1% each year indefinitely.
What is the required rate of return on this stock if this stock is currently selling for $28.24 per share?
Enter your answer as a decimal with a leading zero and 4 decimal places of precision
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
