Question
You purchased a stock for $30 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 $30 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.17.64%
B.21.50%
C.17.00%
D.20.27%
E.18.38%
F.19.25%
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Quantitative Investment Analysis
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
3rd edition
111910422X, 978-1119104544, 1119104548, 978-1119104223
