What is the required rate of return for the stock
Problem
The market price of a stock is $31.14 and it is expected to pay a $2.95 dividend next year. The dividend is expected to grow at 4.22% forever. What is the required rate of return for the stock?
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The market price of a stock is $31.14 and it is expected to pay a $2.95 dividend next year. What is the required rate of return for the stock?
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