The next annual dividend paid by the company (D1) will be$3.35 per share. Constant growth =2.50%.

Required:

If the stock's price=$50.3 per share, what's the required return? Hint: recall the required return is the dividend yield plus the growth rate. These are found by rearranging the constant growth equation, as in the slides. (Enter whole percentage and round your answer to 2 decimal places #.## (e.g., enter 7.25% as 7.25.)