Question
You purchased a stock for $20 per share. The most recent dividend was $2.50 and dividends are expected to grow at a rate of 8%
You purchased a stock for $20 per share. The most recent dividend was $2.50 and dividends are expected to grow at a rate of 8% indefinitely. What is your required rate of return on the stock?
A.21.50%
B.20.27%
C.19.25%
D.17.64%
E.18.38%
F.17.00%
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
6th edition
1305968352, 978-1337635653, 978-1305968356
