Required rate of return on creamy custard stock


Creamy Custard common stock is currently selling for $79.00. It just paid a dividend of $4.60 and dividends are expected to grow at a rate of 5% indefinitely. What is the required rate of return on Creamy Custard's stock?

  • 11.11%
  • 11.76%
  • 12.2%
  • 14.21%

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Finance Basics: Required rate of return on creamy custard stock
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