The next dividend payments by Carroll, Inc., will be $1.90 per share. The dividends are anticipated to

Question:

The next dividend payments by Carroll, Inc., will be $1.90 per share. The dividends are anticipated to maintain a 5.5 percent growth rate, forever. If the stock current sells for $47.00 per share, what is the required return?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...