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What is the current required return on this stock

Last year, when the stock of Shipping Enterprises was sellingfor $48 a share the dividend yield was 4.5 percent. Today, thestock is selling for $46 a share. What is the current required return on this stock if the company maintains a constant dividend growth rate of 3 percent?

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Finance Basics: What is the current required return on this stock

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the current required return on this stock

Reference No:- TGS0676411

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : What were ahnberg''s basic and diluted earnings

Q : Calculate the abc cost of a resident day

Q : Recording a stock dividend

Q : Advantage of issuing bonds

Q : What is the current required return on this stock

Q : Calculate the depreciation on the building for 2013

Q : Estimate of useful life or residual value

Q : Determine the net present value of the proposed project

Q : What is the preferred stock worth if pays quarterly dividend

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the current required return on this stock

Reference No:- TGS0676411

Recent Questions Asked Finance Basics

Q : What were ahnberg''s basic and diluted earnings

Q : Calculate the abc cost of a resident day

Q : Recording a stock dividend

Q : Advantage of issuing bonds

Q : What is the current required return on this stock

Q : Calculate the depreciation on the building for 2013

Q : Estimate of useful life or residual value

Q : Determine the net present value of the proposed project

Q : What is the preferred stock worth if pays quarterly dividend

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