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The next dividend payment by Savitz, Inc., will be $4.95 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever.

The next dividend payment by Savitz, Inc., will be $4.95 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever.
If the stock currently sells for $57 per share, what is the required return?

Multiple Choice

  • 13.00%

  • 5.00%

  • 13.41%

  • 8.68%

  • 13.68%

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