The risk-free interest rate is 4.17% and the stock market's expected return is 15% for the coming years. A share has a beta value of 0.86 and a historical dividend growth of 7%. What will be the required return on the share; is it reasonable to expect dividend growth to be the same in the future?

Choose an alternative:

a 6,6%

b 7,0%

c 11,7%

d 13,5 %