Nashville Co. is trying to calculate its required return on equity. -They recently paid an annual dividend of $2.00 a share. The dividend is expected to grow at a constant rate of 4%. Their current stock price is $30.00 a share. -The stocks beta is 1.4. The current rate of U.S. Treasuries is 2% and the return on the S&P 500 is 8%. - Estimate the required return on equity for Nashville Co.

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