Question
The current yield on Vidia's common stock is 4.8%. The company just paid a $2.25 dividend. The rumor is that the dividend will be $2.50
The current yield on Vidia's common stock is 4.8%. The company just paid a $2.25 dividend. The rumor is that the dividend will be $2.50 next year. The dividend growth rate is expected to remain constant at the current level. What is the required rate of return on Garcias stock?
- 43.75%
- 10.04%
- 16.07%
- 21.88%
- 45.94%
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Corporate Finance
Authors: Jonathan Berk and Peter DeMarzo
3rd edition
978-0132992473, 132992477, 978-0133097894
