A share of common stock currently sells for 110 current, Finance Basics

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A share of common stock currently sells for 110 current

Deriving the Required Rate of Return:

A share of common stock currently sells for $110. Current dividends are $8 per share annually and are expected to grow at 6 percent per year indefinitely. What is the rate of return required by investors in the stock?

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Finance Basics: A share of common stock currently sells for 110 current

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