Question $11(10$ points$)$

Find the required return $(R)$ for a given share of a stock:

Assume the current price $(PO)=$$$10,$ initial dividend $($D$0)$ $$1,$ dividend growth rate $(g)=5\%$ per year.

What is the $R$ or required return?

$50\%$

$15\%$

$5\%$

None of the above