Norton's Historical dividends are shown below. Find the required rate for his stock, assuming the future dividend growth rate will remain the same and the company has an infinite horizon. Assume the January 1, 2011 price of the stock was $40.00. What was the required return for Excellence Inc.’s Stock?
Year 2005 2006 2007 2008 2009 2010
Dividend $1 . 0 1 $1 . 07 $1 . 1 2 $1 . 3 1 $1 . 45 $2.15
What was the estimated annual required return for Norton?'s stock?